SHANGHAI, Nov. 1 (SMM) – Now that the US Federal Reserve (Fed) maintained QE3 unchanged, LME zinc prices opened lower at USD 1965/mt, and then dropped to USD 1,950/mt, hovering between USD 1,950-1,960/mt during Asian trading hours. Eurozone major economic data released yesterday were disappointing, with eurozone September unemployment rate a record high of 12.2%; eurozone October CPI only rose 0.7%, its lowest level since November 2009, pointing to slow eurozone economic recovery. The euro tumbled 1%, while the US dollar index jumped 0.57%, pushing down LME zinc prices to an intraday low of USD 1,946.5/mt, closing at USD 1,953.5/mt, down USD 18.3/mt or 0.93%. Trading volumes increased by 2,889 lots, to 10,620 lots, and total positions increased by 3,509 lots, to 297,791 lots. LME zinc inventories fell by 5,525 mt, to 1,030,125 mt.
LME zinc prices are expected to move between USD 1,940-1,965/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,950-15,060/mt, with spot premiums between RMB 50-100/mt against SHFE 1401 zinc contract prices.