SMM Morning Review - 2010/1/6 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/6 Zinc Market

SMM Insight 10:36:59AM Jan 06, 2010 Source:SMM

SHANGHAI, Jan. 6 (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. 5th
2,575
-33
64,146
230,817
489,100

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. 5th                
21,060
21,015
19,544
1:6.8278

 
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. 5th                  
21,435
21,285
19,402
20,650

Summary

On Tuesday, #0 zinc was traded at RMB 20,650/mt and #1 zinc was traded at RMB 20,630/mt in Shanghai market. SHFE zinc prices fell slightly in the morning, but spot zinc prices remained stable. Overall trading sentiment was lackluster, as downstream buying interest was low. Currently, market supply of #1 zinc was limited, and optimism on future prices of some well-known brands remained unchanged. 

As to futures market, SHFE zinc prices slipped in the morning due to profit-taking, but moved higher steadily at noon positively affected by stabilized stock market, and SHFE three-month contract zinc prices closed at RMB 21,650/mt, up 0.7%. Trading sentiment was very brisk, and positions also increased further, and short-term reductions in zinc prices improved market expectations of higher SHFE zinc prices.

As to global stock markets, Dow Jones Industrial Average advanced by 1.5%, and Standard and Poor's Composite Index inched up by 1.6%, while Nasdaq Composite Index climbed by 1.73%, indicating market preference for risk-assets increased again. The manufacturing data in China, the Europe, and the US released recently expanded persistently, leaving solid support for metals prices. However, LME zinc prices showed weak performance, lacking upward momentum at USD 2,600/mt, depressing market optimism. SMM predicts SHFE three-month contract zinc prices will move in the RMB 21,500-21,800/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 - 2010/1/6 Zinc Market

SMM Insight 10:36:59AM Jan 06, 2010 Source:SMM

SHANGHAI, Jan. 6 (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. 5th
2,575
-33
64,146
230,817
489,100

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. 5th                
21,060
21,015
19,544
1:6.8278

 
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. 5th                  
21,435
21,285
19,402
20,650

Summary

On Tuesday, #0 zinc was traded at RMB 20,650/mt and #1 zinc was traded at RMB 20,630/mt in Shanghai market. SHFE zinc prices fell slightly in the morning, but spot zinc prices remained stable. Overall trading sentiment was lackluster, as downstream buying interest was low. Currently, market supply of #1 zinc was limited, and optimism on future prices of some well-known brands remained unchanged. 

As to futures market, SHFE zinc prices slipped in the morning due to profit-taking, but moved higher steadily at noon positively affected by stabilized stock market, and SHFE three-month contract zinc prices closed at RMB 21,650/mt, up 0.7%. Trading sentiment was very brisk, and positions also increased further, and short-term reductions in zinc prices improved market expectations of higher SHFE zinc prices.

As to global stock markets, Dow Jones Industrial Average advanced by 1.5%, and Standard and Poor's Composite Index inched up by 1.6%, while Nasdaq Composite Index climbed by 1.73%, indicating market preference for risk-assets increased again. The manufacturing data in China, the Europe, and the US released recently expanded persistently, leaving solid support for metals prices. However, LME zinc prices showed weak performance, lacking upward momentum at USD 2,600/mt, depressing market optimism. SMM predicts SHFE three-month contract zinc prices will move in the RMB 21,500-21,800/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