SHANGHAI, Oct. 28 (SMM) – LME zinc prices overnight opened at USD 1,936.3/mt. dragged down by falling China's stocks market, LME zinc prices dipped to USD 1,926/mt. US major economic data released overnight was mixed. University of Michigan's CCI dropped to the lowest this year, showing a pessimistic outlook of US consumers, and causing expectations that the Fed will maintain QE3 this year to grow. This boosted LME zinc prices to gain back early losses, closing at USD 1,949.5/mt, up USD 10/mt. Trading volumes decreased by 145 lots, to 8,153 lots, and total positions increased by 2,513 lots, to 295,000 lots. LME zinc inventories fell by 2,525 mt to 1,010,175 mt. LME trading time was adjusted to 9:00-3:00 AM the next day (Beijing time).
The US dollar index met resistance at the 5-day moving average, dipping to a record low of 78.99. The market is focused on the Fed's policy meeting result.
Base metals prices strengthened outside copper and nickel. Concerns that QE3 will be tapered off this year eased due to sluggish economic data from the US, with overall market sentiment optimistic. LME zinc prices are expected to move between USD 1,935-1,965/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,990-15,090/mt, with spot premiums between RMB 50-90/mt.