SHANGHAI, Nov. 4 (SMM) – LME zinc prices overnight opened lower at USD 1,953/mt, and then edged up as both official and HSBC’s PMIs for China was positive, touching USD 1,967/mt. But European currencies against the US dollar dropped further, and US ISM manufacturing index unexpected grew rapidly for the second consecutive month, up from 56.2 in September, to 56.4, its record high since April 2011, pushing ICE US dollar index up to 80.78, and closing with gains for the sixth straight month. This pushed down LME zinc prices to lose early gains, closing at USD 1,936/mt, down USD 17.5/mt or 1%. Trading volumes decreased by 793 lots, to 9,827 lots, and total positions decreased by 523 lots, to 297,000 lots.
LME zinc prices are expected to move between USD 1,925-1,955/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,900-15,020/mt, with spot premiums expanding to RMB 90-170/mt against SHFE 1401 zinc contract prices.