Metals News
SMM Morning Review - 2009/12/31 Zinc Market
smm insight
10:25AM
Source:SMM

SHANGHAI, Dec. 31 (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. 30th
2,575
-31
38,930
230,324
486,275

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. 30th                
20,410
20,205
19,383
1:6.8283

 
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. 30th                
20,715
20,520
19,328
19,950

Summary

On Wednesday, in Shanghai market, #0 zinc was traded at RMB 19,920-19,980/mt, with offers for limited well-known brands above RMB 20,000/mt, and trading volumes were very limited at higher prices. #1 zinc was traded at RMB 19,900-19,950/mt, zinc prices moved higher rapidly, with no signs of reduction. Although downstream inquiries were active, actual transactions were cautious.

As to futures market, SHFE zinc prices opened high and moved higher, setting a new high easily. SHFE spot-month contract zinc prices climbed to RMB 20,410/mt, and SHFE three-month contract zinc prices closed at RMB 20,965/mt, up 2%, and positions increased by nearly 40,000 lots to 275,000 lots. Trading sentiment was bullish in futures market, and optimism continued to increase in the market.

Recently, SHFE zinc prices soared rapidly, laying a solid foundation for 2010. SMM predicts SHFE three-month contract zinc prices will move in the RMB 20,800-21,200/mt range today.

 

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