SMM Morning Review - 2010/1/7 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/7 Zinc Market

SMM Insight 10:36:10AM Jan 07, 2010 Source:SMM

SHANGHAI, Jan. 7 (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. 6th
2,695
-32
64,472
229,337
489,600

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. 6th                
21,200
21,215
19,655
1:6.8277

 
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. 6th                  
21,570
21,590
19,417
21,075

Summary

On Wednesday, #0 zinc was traded at RMB 21,050-21,100/mt and #1 zinc was traded at RMB 21,000/mt in Shanghai market. Spot zinc prices stood at RMB 21,000/mt, and optimistic sentiment was strong in the market, and transactions made by traders and downstream consumers improved, but suppliers held different views on cargo movement currently.

As to futures market, SHFE zinc prices fluctuated at high levels yesterday, and SHFE three-month zinc contract closed at RMB 21,740/mt, up 1.1%, following SHFE copper and aluminum prices. SHFE three-month zinc contract received pressure at RMB 22,000/mt, but LME zinc prices soared by 4.7% supported by speculations of heavy snow in North China and supply shortages of electric power in some regions of China, while LME copper prices climbed by 2%, LME aluminum prices inched up by 3.1%, while LME lead prices advanced by 2.7%. In the mean time, LME zinc prices have break through USD 2,700/mt to USD 2,722/mt, a record high since March 2008.

Although the freezing weather and heavy snow in North China exerted negative impact on local producers to some extent, the upward momentum in zinc prices will remain strong in view of strong speculations. SMM predicts SHFE three-month zinc contract will move in the RMB 22,000-22,800/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 - 2010/1/7 Zinc Market

SMM Insight 10:36:10AM Jan 07, 2010 Source:SMM

SHANGHAI, Jan. 7 (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. 6th
2,695
-32
64,472
229,337
489,600

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. 6th                
21,200
21,215
19,655
1:6.8277

 
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. 6th                  
21,570
21,590
19,417
21,075

Summary

On Wednesday, #0 zinc was traded at RMB 21,050-21,100/mt and #1 zinc was traded at RMB 21,000/mt in Shanghai market. Spot zinc prices stood at RMB 21,000/mt, and optimistic sentiment was strong in the market, and transactions made by traders and downstream consumers improved, but suppliers held different views on cargo movement currently.

As to futures market, SHFE zinc prices fluctuated at high levels yesterday, and SHFE three-month zinc contract closed at RMB 21,740/mt, up 1.1%, following SHFE copper and aluminum prices. SHFE three-month zinc contract received pressure at RMB 22,000/mt, but LME zinc prices soared by 4.7% supported by speculations of heavy snow in North China and supply shortages of electric power in some regions of China, while LME copper prices climbed by 2%, LME aluminum prices inched up by 3.1%, while LME lead prices advanced by 2.7%. In the mean time, LME zinc prices have break through USD 2,700/mt to USD 2,722/mt, a record high since March 2008.

Although the freezing weather and heavy snow in North China exerted negative impact on local producers to some extent, the upward momentum in zinc prices will remain strong in view of strong speculations. SMM predicts SHFE three-month zinc contract will move in the RMB 22,000-22,800/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