SHANGHAI, Oct. 18 (SMM) – LME zinc prices overnight opened at USD 1,909/mt, rising in the morning trading and then fell. In the afternoon, LME zinc prices fell further due to strong short momentum, and once dipped to USD 1,892/mt. US September housing starts rose by 15%, to 872,000 units, a record high since July 2008, and much higher than the forecast of 2.7% and 770,000 units. September building permits also increased to 894, 000 units, the highest since July 2008. As a result, the US dollar index fell to 79, and LME zinc prices rallied and finally closed at USD 1,924.5/mt, up USD 18/mt. LME zinc inventories fell by 1,525 mt, to 1,059,650 mt.
LME zinc prices are expected to rise to USD 1,920-1,940/mt today, and SHFE 1301 zinc contract prices should move between RMB 15,100-15,300/mt, with spot discounts between RMB 180-220/mt.