SMM Zinc Market Morning Review (2013-10-17)

SHANGHAI, Oct. 17 (SMM) – LME zinc prices overnight opened at USD 1,926/mt, and then hovered between USD 1,920-1,925/mt. As base metals and gold prices fell across the board during European trading hours, LME zinc prices plummeted to USD 1,895/mt, down 1.8%. Senate majority leader Harry Reid and Republican leader Mitch McConnell announced Wednesday an agreement on the debt ceiling issue was expected to be reached, causing market optimism to rise and pushing up US stocks. LME zinc prices gained back some losses, and closed at USD 1,930/mt. Trading volumes increased by 4,154 lots, to 13,832 lots, and total positions decreased by 6,268 lots, to 285,390 lots. LME zinc inventories grew by 73,575 mt, to 1,060,475 mt.

LME zinc prices are expected to move between USD 1,925-1,950/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,930-15,030/mt, with spot premiums between RMB 100-160/mt.