SHANGHAI, Jan. 17 (SMM) – Investors concerns over negotiations on US debt ceiling issue took center stage again. LME zinc prices overnight opened at USD 1,995/mt, and generally moved around USD 1,997/mt in Asian trading hours, touching USD 2,003/mt. As short momentum mounted after Asian trading, LME zinc prices inched down and dipped to a near-month-low of USD 1,966.5/mt. US December CPI rose 1.8% YoY, slightly lower than forecasts, indicating US now has no inflationary risk, and giving support to the US Federal Reserve extending quantitative easing policies. Besides, US Federal Reserve's Beige Book also shows improving economy, causing market concerns to ease. As a result, LME zinc prices rebounded and closed at USD 1,987/mt, down USD 10/mt. LME zinc inventories grew by 4,825 mt to 1,226,775 mt.
LME zinc prices should fluctuated between USD 1,960-2,010/mt today, and SHFE three-month zinc contract prices should slip to RMB 15,150-15,300/mt, with spot discounts RMB 200-250/mt.