SHANGHAI, Oct. 25 (SMM) – LME zinc prices overnight opened at USD 1,932.8/mt. As HSBC's October PMI for China hit a 7-month high, and since new order index also reached a 7-month high, LME zinc prices edged up to USD 1,935/mt, touching USD 1,938/mt briefly, but meeting resistance at the 5-day moving average. The number US initial jobless claims last week was 350,000, higher than expected, and negatively affected the US dollar index. Markit's US manufacturing PMI in October was sluggish, causing speculations that the Fed will delay QE3 wind-down to grow. In this context, LME zinc prices hovered between USD 1,925-1,935/mt, and closed at USD 1,939.5/mt. Trading volumes decreased by 3,529 lots, to 8,298 lots, and total positions increased by 3,558 lots, to 293,000 lots.
The US dollar index hit a near-nine-month low as the market expected the Fed will maintain assets purchasing program until next year. The number US initial jobless claims last week decreased to 350,000, with the growth lower than expected; US trade deficit in August was USD 38.8 billion, better than expectations; US manufacturing growth in October recorded the lowest for the year as the survey was partially undertook during the US government shutdown .
LME zinc prices are expected to move between USD 1,925-1,945/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,960-15,050/mt, with spot premiums between RMB 70-110/mt.