News

[End-Use Consumption Lacking Sufficient Support, Guangdong Zinc Premiums Move Sideways] This week, Guangdong premiums were up around 15 yuan/mt WoW. As of this Friday, mainstream #0 zinc in Guangdong was quoted at a discount of 75-120 yuan/mt against the market...

[More Frequent Production Control and Cuts Among Enterprises; Die-casting Zinc Alloy Operating Rates Decline] The decline in operating rates was mainly due to weakening end-use demand, with sluggish shipments at alloy plants leading to production control and cuts. Demand side, end-use consumption was in the traditional off-season, with orders across downstream sectors generally weak...

[Frequent disruptions in China’s supply side; TCs fell in many regions of China in August]: On a weekly basis, the SMM Zn50 domestic weekly average TC fell 400 yuan/mt Zn WoW to -1,150 yuan/mt Zn, and the SMM Imported Zinc Concentrate Index fell $3.5/dmt WoW to -$98.13/dmt. On a monthly basis, the SMM Imported Zinc Concentrate Index fell $17.01/dmt MoM in July to -$89.81/dmt....

[Trader Shipment Willingness is Low at Month-End, Market Holds Prices Firm]: This week, spot premiums in Shanghai rose, with the average price increasing by 10 yuan/mt WoW. As of this Friday, ordinary domestic brands were quoted at a premium of 20~30 yuan/mt against the 2609 contract, while the high-end brand Shuangyan was quoted at a premium of 130 yuan/mt against the 2609 contract.

[Traders' Relaxed Selling Quotes, Spot Premiums Showing Little Change]: This week, spot premiums in Ningbo consolidated, with the overall average price up 5 yuan/mt WoW. As of Friday, the Ningbo spot against the 2609 contract was quoted at a premium of 5 yuan/mt, and the Shanghai premium was at a premium of 25 yuan/mt. Throughout the week, the Shanghai premium maintained a fluctuating trend..

The SHFE/LME zinc price ratio pulled back to around 6.8 and consolidated: This week, the ratio pulled back to around 6.8 and consolidated, closing the zinc ingot import window. Outside China, the US Fed stood pat at its July meeting, US GDP and PCE data missed expectations, and the pullback in the US dollar index boosted base metals. Meanwhile, LME inventory dropped to around 100,000 mt, and LME zinc remained relatively strong.

【SMM Flash News】SMM data shows the operating rate of zinc oxide this week came in at 50.58%, falling 3.94 percentage points week-on-week. The lower operating rate was mainly because some enterprises reduced output or suspended production for maintenance amid weak end-user demand recently.

[Bonded Zone Zinc Inventory Unchanged] According to SMM, as of this Thursday (July 30), the Shanghai Bonded Zone inventory was 300 mt, unchanged WoW, and the bonded zone inventory remained unchanged.

【SMM Flash】SMM surveys show the operating rate of die-casting zinc alloys this week stood at 46.59%, down 2.38 percentage points week-on-week. The decline in operating rates mainly stems from weaker end-user demand. Alloy producers faced sluggish shipments and therefore implemented production controls and cuts.

[Weak demand, galvanising operating rate edges down]: This week, the operating rate of the galvanising industry was 53.39%, down 1.47 percentage points WoW. Raw material side, zinc prices continued to consolidate at highs this week, and enterprises' purchases were still mainly based on rigid demand, with zinc ingot inventories at galvanising enterprises continuing to decline.

[Weak Demand, Galvanizing Operating Rates Edge Down]: This week, the operating rate of the galvanizing industry was 53.39%, down 1.47 percentage points WoW. Raw material side, zinc prices continued to consolidate at highs this week, and enterprise procurement remained mainly rigid demand-driven. The zinc ingot inventory at galvanising enterprises continued to decline.

[Spot premiums in Tianjin remain stable]: This week, spot premiums for zinc ingot in Tianjin remained largely stable. As of this Friday, mainstream domestic brands were quoted at a discount of 60-120 yuan/mt against the 2609 contract, while high-end brands were quoted near parity against the same contract. The Tianjin market was quoted at a discount of around 100 yuan/mt against the Shanghai market, widening the Shanghai-Tianjin price spread, amid the contract rollover this week.

【SMM Flash】Today in Guangdong, the purchasing sentiment of refined zinc stands at 1.85, while selling sentiment registers 2.42.With upward shift in futures price center, downstream buyers show obvious reluctance to chase higher prices. Affected by pricing, market demand turns softer with muted trading activity, and spot premiums/discounts linger at low levels.