SHANGHAI, Oct. 30 (SMM) – LME zinc prices overnight soared initially before falling due to market caution ahead of the Fed’s policy meeting. LME zinc prices opened at USD 1,962/mt, then hovering between USD 1,955-1,965/mt. During European and US trading, LME zinc prices edged up, reaching USD 1,978/mt. US retail sales in September unexpectedly dropped by 0.1%, and Conference Board’s CCI in October fell to 71.2, its lowest since April, distressing market confidence. Meanwhile, the US dollar index rose to 79.67, up 0.4%, pushing down LME zinc prices to close at USD 1,961.3/mt, down USD 1.8/mt. Trading volumes decreased by 1,795 lots, to 8,728 lots, and total positions increased by 2,240 lots, to 294,889 lots. LME zinc inventories fell by 2,200 mt, to 1,035,575 mt.
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 15,080-15,160/mt, with spot premiums between RMB 0-50/mt.