SHANGHAI, Nov. 8 (SMM) – LME zinc prices overnight opened low at USD 1,916.3/mt, and then hovered around the closing price in the previous day, once touching USD 1,923/mt. Major economic news was released during European and US trading hours. Germany’s seasonally adjusted industry output in September dropped 0.9%, much higher than the 1.6% growth in August. European Central Bank unexpectedly lowered its benchmark interest rate by 25 basis points, and US 3Q GDP topped expectations to rise 2.8%, pushing down the euro by 1% and driving up the US dollar index. Base metals rpices were thus weighed down, with LME zinc prices plunging to USD 1,898.5/mt, and finally closing at USD 1,904.5/mt, down USD 15/mt or 0.78%. Trading volumes increased by 3,710 lots, to 11,030 lots, and total positions decreased by 3,374 lots, to 292,971 lots. LME zinc inventories fell by 2,700 mt to 1,017,975 mt.
LME zinc prices are expected to move between USD 1,890-1,910/mt today, and SHFE 1401 zinc contract prices should hover between RMB 14,900-14,970/mt, with spot premiums between RMB 80-130/mt against SHFE 1401 zinc contract prices.