SHANGHAI, Oct. 15 (SMM) – UK's inflation rate released overnight slowed, and Germany's October economic sentiment index also hit a two-year low. Germany also lowered its growth target in the following two years. This caused market concerns over deteriorating European economy to growth. But the PBOC lowered repurchase rate by 10 basis points again. In this scenario, LME zinc prices opened at USD 2,333.25/mt overnight then hovered around USD 2,340/mt during Asian trading hours, but dipping to the 60-day moving average of USD 2,321.75/mt before rising, and closing at USD 2,348/mt, up USD 13.75/mt or 0.59%. Trading volumes increased by 3,556 to 9,341 lots, and total positions were down 1,993 to 309,000 lots. LME zinc inventories were down to 726,475 mt.
SHFE 1412 zinc contract prices opened at RMB 16,790/mt overnight, but slumped to RMB 16,605/mt, then rallied to RMB 16,870/mt, and closed at RMB 16,825/mt, up RMB 15/mt or 0.09%. Trading volumes increased 282,958 to 420,810 lots, and total positions increased 10,850 to 171,264 lots.
China September CPI and PPI, European economic indicators and US September PPI and CPI scheduled for release today are expected to be mixed. LME zinc prices will fluctuate between USD 2,335-2,365/mt today, and SHFE 1412 zinc contract prices will move between RMB 16,780-16,900/mt, with spot premiums between RMB 170-230/mt against SHFE 1412 zinc contract prices.