SHANGHAI, Oct. 10 (SMM) – LME zinc prices opened at USD 2,333/mt overnight. A falling US dollar index, combined with rising A-shares and stimuli for the property market, pushing up LME zinc prices to touch USD 2,354/mt. But major economic indicators from Germany and France were sluggish. The number of US initial jobless claims last week unexpectedly fell, with the weekly average over the past month hitting an eight-year low. This fueled market anticipation of an earlier interest rate hike by the Fed, and drove up the US dollar index. LME zinc prices rolled back some gains and closed at USD 2,333.75/mt, up USD 11.5/mt or 0.5%. Trading volumes increased by 1,503 to 9,798 lots, and total positions increased by 3,892 to 303,114 lots. LME zinc inventories were down 2,825 to 734,525 mt.

SHFE 1412 zinc contract prices opened at RMB 16,865/mt on Thursday evening, and touched as high as RMB 16,985/mt. But as a large number of longs left the market after taking profit, SHFE 1412 zinc contract prices fell and found support from RMB 16,830/mt, closed at RMB 16,830/mt, up RMB 25/mt or 0.15%. Trading volumes increased 31,680 to 268,630 lots, and total positions decreased by 930 to 186,122 lots.

UK's August trade data are scheduled for release today. LME zinc prices will fluctuate between USD 2,310-2,340/mt today. The market will continue to absorb negative news. When combined with a rising US dollar index, base metals prices should be dragged down. But since LME zinc inventories fell 18,700 mt over the past five weeks, LME zinc prices should find some support, moving between USD 2,320-2,350/mt, and SHFE 1412 zinc contract prices will move between RMB 16,800-16,900/mt, with spot premiums between RMB 200-230/mt against SHFE 1412 zinc contract prices.