MARKET TALK: China Zinc Futures Up On LME; May Correct Soon

Zinc futures traded on Shanghai Futures Exchange higher, as rise in LME 3-month zinc overnight boosted market sentiment, but "the (SHFE futures) prices are a bit too high; China is now a net exporter of zinc, but the (futures) differentials look like that for a net importer," says Gu Yuan, Jinpeng Futures' analyst. Notes prices pressured to correct down, perhaps later this week. Benchmark July contract at CNY29,800/ton, +CNY600. LME 3-month zinc at $3,245/ton, +$4 from PM kerb.