SMM Morning Review - 2010/1/13 Zinc Market-Shanghai Metals Market

Hot Keywords

  • Nickel market
  • Market commentary
  • Silicon
  • zinc
  • Copper
  • Aluminium
  • Production data
  • Inventory data
  • Zinc
  • Stainless steel
  • Sales data
  • Nickel
  • Morning comments
  • Silicon metal
  • Nickel pig iron

SMM Morning Review - 2010/1/13 Zinc Market

SMM Insight 10:42:56AM Jan 13, 2010 Source:SMM

SHANGHAI, Jan. 13 (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. 12th
2,445
-31
66,762
232,120
489,275

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
Jan. 12th                 
20,900
20,775
19,831
1:6.8274

 
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. 12th                  
21,285
21,145
19,471
20,675

Summary

On Tuesday, #0 zinc was traded at RMB 20,650-20,700/mt, and #1 zinc was traded at RMB 20,600-20,650/mt in the Shanghai market. Spot zinc prices moved on an upward track along with recovering SHFE zinc prices, but downstream purchasing interest remained low due to declining orders.

As to futures market, SHFE zinc prices opened low yesterday, and transactions were bullish, with positions up more than 10,000 lots. SHFE three-month contract zinc prices regained following rising stock markets at noon, with prices ending at RMB 21,490/mt finally. However, China's central bank, announced on Tuesday to raise the deposit reserve requirement ratio by 0.5 percentage points from Jan. 18 this year, exerting negative impact on metals prices. LME zinc prices fell below 30-day moving average, and closed at USD 2,445/mt, down 4.86%, hitting a record low before the Christmas holiday 2009.

SMM predicts SHFE zinc prices will be affected by LME zinc prices negatively, with SHFE three-month contract zinc prices fluctuating in the RMB 20,500-21,200/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

SMM Morning Review - 2010/1/13 Zinc Market

SMM Insight 10:42:56AM Jan 13, 2010 Source:SMM

SHANGHAI, Jan. 13 (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. 12th
2,445
-31
66,762
232,120
489,275

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
Jan. 12th                 
20,900
20,775
19,831
1:6.8274

 
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. 12th                  
21,285
21,145
19,471
20,675

Summary

On Tuesday, #0 zinc was traded at RMB 20,650-20,700/mt, and #1 zinc was traded at RMB 20,600-20,650/mt in the Shanghai market. Spot zinc prices moved on an upward track along with recovering SHFE zinc prices, but downstream purchasing interest remained low due to declining orders.

As to futures market, SHFE zinc prices opened low yesterday, and transactions were bullish, with positions up more than 10,000 lots. SHFE three-month contract zinc prices regained following rising stock markets at noon, with prices ending at RMB 21,490/mt finally. However, China's central bank, announced on Tuesday to raise the deposit reserve requirement ratio by 0.5 percentage points from Jan. 18 this year, exerting negative impact on metals prices. LME zinc prices fell below 30-day moving average, and closed at USD 2,445/mt, down 4.86%, hitting a record low before the Christmas holiday 2009.

SMM predicts SHFE zinc prices will be affected by LME zinc prices negatively, with SHFE three-month contract zinc prices fluctuating in the RMB 20,500-21,200/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