SHANGHAI, Oct. 14 (SMM) – LME zinc prices last Friday opened at USD 1,904/mt. As an agreement on the US debt ceiling issue was expected to be reached to avert a default, market optimism increased, pushing up Asian stocks, while the US dollar index dropped slightly. LME zinc prices rose further to USD 1,900-1,915/mt, but were dragged down by the plunging gold prices at one point. Nevertheless, as a large number of shorts closed positions after profit-taking, LME zinc prices closed at USD 1,916/mt, up USD 15/mt, or 0.79%. Trading volumes increased by 1,385 lots, to 7,611 lots, and total positions decreased by 1,084 lots, to 286,894 lots. LME zinc inventories fell by 4,450 mt, to 993,450 mt.
The US dollar index closed at 80.43, down 0.07%.
China’s CPI and PPI will be released today, which are optimistic. Ongoing impasse of the US debt negotiation will refrain zinc prices from rising. LME zinc prices are expected to move between USD 1,900-1,925/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,930-15,040/mt, with spot premiums between RMB 80-130/mt.