SHANGHAI, Jan. 15 (SMM) - LME zinc prices overnight opened at USD 2,018.5/mt. The Shanghai Composite rose by 3% during Asian trading, so LME zinc prices inched up and broke thorugh the 5-day moving average, touching USD 2,032/mt. After Asian trading, short momentum mounted, and LME zinc prices met resistance. Negotiations between US Congress and the government on raising debt ceiling and spending cuts took center stage again, while Bernanke's statement failed to boost investors' confidence, with market concerns growing. As a result, LME zinc prices fell below USD 2,000/mt, and dipped to in intraday low USD 1,996/mt, and finally closed at USD 2,000/mt, down USD 20.5/mt. LME zinc inventories grew by 225 mt to 1,215,875 mt.
LME zinc prices should fluctuated between USD 1,980-2,020/mt today, and SHFE three-month zinc contract prices should slip to RMB 15,250-15,450/mt, with spot discounts RMB 270-320/mt.