Metals News
SMM Morning Review - 2010/1/5 Zinc Market
smm insight
10:13AM
Source:SMM

SHANGHAI, Jan. 5 (SMM) -- LME Market 

 
Close
(USD/mt)
Premium/Discount
Volume
(lot)
Position
(lot)
Inventory
(mt)
3-mth Contract
Spot – 3 mth
Dec.  Average
2,413
-35
58,321
230,995
462,634
Jan. 4th
2,580
-32
67,779
229,154
489,125

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
Jan. 4th                
21,100
20,935
19,517
1:6.8281

 
Zinc – 3mth (RMB/mt)
Shanghai Spot
#0 Zinc Ingot
SHFE Close
Settlement
Weighted Ave.
Dec. 16th              
18,700
18,680
18,684
18,100
Jan. 4th                  
21,240
21,300
19,384
20,650

Summary

Trading sentiment was not brisk on the first trading day of 2010. In Shanghai market, #0 zinc was traded at RMB 20,650/mt and #1 zinc was traded at RMB 20,600-20,630/mt. In the afternoon, offers at RMB 20,800-20,900/mt were heard in the market along with rising SHFE zinc prices, with limited trading volumes reported. However, downstream purchasing interest and inquiries were low, with higher wait-and-see sentiment. Meanwhile, smelters also held low interest in moving goods, limiting market supply. The neutral market sentiment will continue.

As to futures market, SHFE zinc prices lost some previous gains due to plunged A-share stock market yesterday, generating the wait-and-see sentiment of market players, while LME zinc prices fell from USD 2,550/mt, and LME zinc inventories were close to 500 kt, exerting downward pressure on LME zinc prices. SMM predicts SHFE three-month contract zinc prices will fluctuate in the RMB 21,000-21,500/mt range today, and spot market will be as brisk as yesterday.

 

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