SMM Morning Review - 2010/1/4 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/4 Zinc Market

SMM Insight 11:25:41AM Jan 04, 2010 Source:SMM

SHANGHAI, Jan. 4 (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. 31st
2,575
-31
54,451
228,484
488,050

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. 31st                  
20,805
20,805
19,480
1:6.8282

 
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. 31st                 
21,195
21,005
19,362
20,325

Summary

In Shanghai market, #0 zinc was traded at RMB 20,300-20,350/mt, and #1 zinc was traded at RMB 20,250/mt on the last trading day of 2009. SHFE zinc prices remained strong, but spot market was lukewarm. Downstream consumers reduced purchase volumes at higher prices and preferred to stay out of the market due to the withdrawal of investors after profit-taking in the short term despite of their optimistic market outlook.

As to futures market, SHFE zinc prices opened high and moved higher on December 31st, with SHFE three-month contract zinc prices closing at a record high of RMB 21,375/mt, while positions dropped slightly due to profit-taking by investors.

The Ministry of Finance and the Ministry of Commerce jointly issued the circular on adjustment of car trade-in subsidy standard, raising subsidies from RMB 3,000-6,000 to RMB 5,000-18,000, and market players believe this move will help support production and sales of automobile to continue to increase significantly in 2010. The Institute for Supply Management-Chicago released on December 30th that the Chicago business climate index in December rose to 60 from November levels of 56.1, while previous forecast was 55.5, and the business climate index has risen for three consecutive months, indicating that the economy is recovering strongly, with clear signs of increase. Market rumors report that domestic stock index futures will be launched recently, driving up indicators in Shanghai and Shenzhen stock index, and boosting futures market as a result.

SMM predicts SHFE three-month contract zinc prices will move in the RMB 21,000-21,400/mt range today.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

Key Words:  Market movement  zinc price  zinc Zn 

SMM Morning Review - 2010/1/4 Zinc Market

SMM Insight 11:25:41AM Jan 04, 2010 Source:SMM

SHANGHAI, Jan. 4 (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. 31st
2,575
-31
54,451
228,484
488,050

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. 31st                  
20,805
20,805
19,480
1:6.8282

 
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. 31st                 
21,195
21,005
19,362
20,325

Summary

In Shanghai market, #0 zinc was traded at RMB 20,300-20,350/mt, and #1 zinc was traded at RMB 20,250/mt on the last trading day of 2009. SHFE zinc prices remained strong, but spot market was lukewarm. Downstream consumers reduced purchase volumes at higher prices and preferred to stay out of the market due to the withdrawal of investors after profit-taking in the short term despite of their optimistic market outlook.

As to futures market, SHFE zinc prices opened high and moved higher on December 31st, with SHFE three-month contract zinc prices closing at a record high of RMB 21,375/mt, while positions dropped slightly due to profit-taking by investors.

The Ministry of Finance and the Ministry of Commerce jointly issued the circular on adjustment of car trade-in subsidy standard, raising subsidies from RMB 3,000-6,000 to RMB 5,000-18,000, and market players believe this move will help support production and sales of automobile to continue to increase significantly in 2010. The Institute for Supply Management-Chicago released on December 30th that the Chicago business climate index in December rose to 60 from November levels of 56.1, while previous forecast was 55.5, and the business climate index has risen for three consecutive months, indicating that the economy is recovering strongly, with clear signs of increase. Market rumors report that domestic stock index futures will be launched recently, driving up indicators in Shanghai and Shenzhen stock index, and boosting futures market as a result.

SMM predicts SHFE three-month contract zinc prices will move in the RMB 21,000-21,400/mt range today.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

Key Words:  Market movement  zinc price  zinc Zn