SHANGHAI, Dec. 2 (SMM) – LME zinc prices overnight opened at USD 1,876/mt, then leveled out due to the lack of solid news. Eurozone November unemployment rate dropped for the first time in four years, while inflation rate climbed. When combined with the weakening US dollar index and a large number of speculators entering the market, LME zinc prices rose to USD 1,895/mt, but then lost some gains,
closing at USD 1,879/mt, up USD 5/mt. Trading volumes decreased by 1,001 lots to 8,164 lots, and total positions decreased by 12,705 lots, to 298,000 lots. China's official PMI in November topped expectations, boosting speculations over China's economy. But the nearing IPO execution may curb Chinese stocks markets.
LME zinc prices are expected to move between USD 1,870-1,900/mt today, and SHFE 1402 zinc contract prices should hover between RMB 14,740-14,800/mt, with spot premiums expanding to RMB 90-130/mt against SHFE 1401 zinc contract prices.