SHANGHAI, Oct. 16 (SMM) – US debt ceiling negotiation trapped into deadlock again. Rating agency Fitch included US AAA rating in negative watch list, meaning US rating may be downgraded. LME zinc prices last Friday opened at USD 1,930/mt, and then hovered between USD 1,925-1,935/mt, and closed at USD 1,930/mt, down USD 3.5/mt or 0.18%. Trading volumes decreased by 408 lots, to 9,678 lots, and total positions increased by 1,608 lots, to 291,658 lots. LME zinc inventories fell by 3,325 mt, to 986,900 mt. market optimism decreased as US debt negotiation has yet to produce a result, and US cooperation earnings report and economic data overnight were pessimistic. China’s State Council released the Guidance Suggestion Regarding Revolving Overcapacity recently, showing it is resolute to eliminate capacity surplus.
LME zinc prices are expected to move between USD 1,910-1,935/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,880-14,980/mt, with spot premiums between RMB 100-160/mt.