SHANGHAI, Oct. 11 (SMM) – LME zinc prices overnight opened at USD 1,884/mt. Although the US dollar index continued to rise, LME zinc prices edged up due to increasing longs. US Republican Party gave a positive response to Obama’s proposal of a short-term debt limit hike, raising market sentiment. European stocks jumped 1%, driving up LME zinc prices to break through the 5-day moving average, and closing at USD 1,901/mt, up USD 15/mt. Trading volumes decreased by 1,552 lots, to 6,226 lots, and total positions increased by 2,154 lots, to 288,000 lots.
The US dollar index continued to rise but met resistance at 80.49.
LME zinc prices are expected to move between USD 1,890-1,915/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,820-14,920/mt, with spot premiums between RMB 140-170/mt.