SHANGHAI, Apr. 10 (SMM) – LME zinc prices opened at USD 2,027/mt overnight, and fluctuated between USD 2,025-2,030/mt during Asian trading hours due to the lack of positive news. FOMC's March policy meeting minute expressed they will maintain low interest rates before the inflation rate reaches 2%, and inflation rate looks set to fall. The US dollar index dropped for four consecutive trading days, hitting a new low of 79.46, when combined with rising US stocks, base metals prices rose across the board. But LME zinc prices were comparably weak, touching USD 2,028/mt before falling back, and closing at USD 2,022/mt, down USD 6/mt or 0.3%. Trading volumes decreased by 1,398 lots to 7,779 lots, and total positions increased by 369 lots to 295,732 lots. LME zinc inventories fell by 3,275 mt to 821,050 mt.
SHFE 1406 zinc contract prices opened at RMB 14,940/mt on Wednesday evening, and once dipped to RMB 14,890/mt, but edged up later the day with the support of buyers, closing at RMB 14,925/mt, down RMB 5/mt or 0.03%. Trading volumes increased by 1,322 lots to 9,684 lots, and total positions decreased by 44 lots to 65,162 lots.
The market was optimistic after the release of US Federal Reserve's policy meeting minute. China's March trade data and Bank of England's interest rate decision will be announced today. LME zinc prices are expected to move between USD 2,010-2,035/mt today, and SHFE 1406 zinc contract prices will hover between RMB 14,880-14,980/mt, with spot discounts of RMB 110-130/mt against SHFE 1406 zinc contract prices.