Metals News
SMM Morning Review - 2009/12/24 Zinc Market
smm insight
10:20AM
Source:SMM

SHANGHAI, Dec. 24 (SMM) -- LME Market 

 
Close
(USD/mt)
Premium/Discount
Volume
(lot)
Position
(lot)
Inventory
(mt)
3-mth Contract
Spot – 3 mth
November Average
2,235
-27
51,978
243,077
438,267
Dec. 23rd                           
2,530
-36.5
48,594
229,144
465,075

SHFE Market

 
Zinc – Spot Month (RMB/mt)
RMB/USD
SHFE Close
Settlement
Weighted Ave.
Dec. 16th              
18,390
18,370
18,371
1:6.8280
Dec. 23rd               
18,950
18,945
18,734
1:6.8287

 
Zinc – 3mth (RMB/mt)
Shanghai Spot
#0 Zinc Ingot
SHFE Close
Settlement
Weighted Ave.
Dec. 16th              
18,700
18,680
18,684
18,100
Dec. 23rd                  
19,285
19,250
19,075
18,625

Summary

On Wednesday, Shanghai #0 zinc was traded at RMB 18,600-18,650/mt, and offers for limited brands were as low as RMB 18,550-18,570/mt, while #1 zinc was traded around RMB 18,550/mt. SHFE zinc prices began declining dampened by short players, but spot transactions remained neutral, resulting in quiet overall trading sentiment.

As to futures market, SHFE three-month contract zinc prices advanced slightly in the morning, but dipped to RMB 19,085/mt, and then recovered gradually along with stabilized SHFE copper prices at noon, and finally closed at RMB 19,285/mt. Institution had greater pressure of cash flow before the new year holiday, and the wait-and-see sentiment dominated the market. The US dollar softened last night, triggering large amount of purchase volumes in commodity markets, and LME zinc prices broke through the resistance level of USD 2,500/mt, with gains reaching 3.3%. SMM predicts SHFE zinc prices will move higher today, with prices expected to move in the RMB 19,300-19,700/mt range.

 

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