SHANGHAI, Oct. 9 (SMM) – LME zinc prices opened at USD 2,326/mt overnight, then edged up during European trading hours to test USD 2,340/mt, but rolling back early gains later on. Fed officials’ dovish statement caused the US dollar index to fall steeply. When combined with falling LME zinc inventories, LME zinc prices leveled out at USD 2,320/mt, and closing at USD 2,322.25/mt, down USD 6.5/mt or 0.28%. Trading volumes increased by 2,322 to 8,295 lots, and total positions increased by 538 to 299,222 lots. LME zinc inventories were down 2,450 to 737,350 mt.
SHFE 1412 zinc contract prices opened at RMB 16,900/mt on Wednesday evening, then dropped to as low as RMB 16,675/mt, but clawing back some losses and closing at RMB 16,720/mt, down RMB 110/mt or 0.65%. Trading volumes were 236,950 lots, and total positions increased by 14,234 to 180,658 lots.
Alcoa posted better-than-expected earnings in Q3, boosting market confidence. Falling US dollar index will also support LME zinc prices. LME zinc prices will fluctuate between USD 2,310-2,340/mt today, and SHFE 1412 zinc contract prices will move between RMB 16,700-16,800/mt, with spot premiums between RMB 210-240/mt against SHFE 1412 zinc contract prices.