SHANGHAI, Oct. 29 (SMM) – LME zinc prices overnight opened at USD 1,945.8/mt, once touching USD 1,975/mt due to fund purchasing, hitting a record high since mid-August.The Fed's policy meeting will be held this week. Due to the US government shutdown, the market anticipates the Fed will unlikely scale back its USD 85 billion monthly asset purchasing program and will maintain easing monetary policy until next year, which counteracted concerns that the US dollar index will strengthen and China may tighten its credit. LME zinc prices stood at all the moving averages and closed at USD 1,963/mt, up USD 13.5/mt. Trading volumes increased by 2,370 lots, to 10,523 lots, and total positions decreased by 2,452 lots, to 293,000 lots.
The US dollar index rose modestly overnight, and closed at 79.34. The Standard & Poor's 500 Index hit a record high due to expectations that the Fed will maintain its stimulus policy in place in the near term.
LME zinc prices are expected to move between USD 1,950-1,980/mt today, and SHFE 1401 zinc contract prices should hover between RMB 15,080-15,180/mt, with spot premiums between RMB 0-40/mt.