SHANGHAI, Oct. 18 (SMM) – LME zinc prices overnight opened at USD 1,930/mt, and then inched down as a large number of longs left the market after profit-taking. Although US government will reopen soon, zinc prices did not find solid support as the market had been optimistic, dipping to USD 1,909/mt. During European and US trading hours, it was reported Fitch will downgrade US credit rating, while China’s Dagong had lowered US credit rating, pushing down the US dollar index by 1%. When combined with growing expectations that the Fed will maintain asset purchasing program unchanged, LME zinc prices edged up to USD 1,930/mt, and closed at USD 1,928.5/mt, down USD 1.5/mt or 0.08%. Trading volumes decreased by 4,275 lots, to 9,557 lots, and total positions increased by 1,843 lots, to 287,233 lots. LME zinc inventories grew by 5,375 mt, to 1,065,850 mt.
LME zinc prices are expected to move between USD 1,915-1,940/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,900-15,000/mt, with spot premiums between RMB 100-160/mt.