SMM Morning Review - 2010/1/15 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/15 Zinc Market

SMM Insight 10:15:54AM Jan 15, 2010 Source:SMM

SHANGHAI, Jan. 15 (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. 14th
2,510
-28.5
62,893
231,270
488,175

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. 14th                
20,120
20,180
19,848
1:6.8272

 
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. 14th                  
20,425
20,520
19,476
20,100

Summary

On Thursday, SHFE zinc prices opened high but went lower, and SHFE1004 zinc contract opened at RMB 20,935/mt, but closed at RMB 20,610/mt, showing weak performance, and with positions up more than 7,000 lots. Although China’s central bank issued RMB 50 billion in three-month bills and RMB 40 billion in 91-day repurchase agreements in the regular open-market operations, the expectations of further hikes in the rate of bills issued by China's central bank declined, capital markets stabilized temporarily as a result. However, whether or not zinc prices can stand firm at RMB 20,000/mt in spot market remains unknown. Spot discounts against SHFE three-month zinc contract were about RMB 500/mt, with limited deals made around RMB 20,100/mt, and #1 zinc was traded at RMB 20,050/mt. A limited number of downstream consumers were uneager to purchase goods from their expectations of lower zinc prices, and the wait-and-see sentiment dominated the market as a result.

LME zinc prices still showed an unclear trend, and slipped after moving higher, with prices ending at USD 2,510/mt finally. SMM predicts SHFE three-month contract zinc prices will move in the RMB 20,400-20,800/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 - 2010/1/15 Zinc Market

SMM Insight 10:15:54AM Jan 15, 2010 Source:SMM

SHANGHAI, Jan. 15 (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. 14th
2,510
-28.5
62,893
231,270
488,175

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. 14th                
20,120
20,180
19,848
1:6.8272

 
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. 14th                  
20,425
20,520
19,476
20,100

Summary

On Thursday, SHFE zinc prices opened high but went lower, and SHFE1004 zinc contract opened at RMB 20,935/mt, but closed at RMB 20,610/mt, showing weak performance, and with positions up more than 7,000 lots. Although China’s central bank issued RMB 50 billion in three-month bills and RMB 40 billion in 91-day repurchase agreements in the regular open-market operations, the expectations of further hikes in the rate of bills issued by China's central bank declined, capital markets stabilized temporarily as a result. However, whether or not zinc prices can stand firm at RMB 20,000/mt in spot market remains unknown. Spot discounts against SHFE three-month zinc contract were about RMB 500/mt, with limited deals made around RMB 20,100/mt, and #1 zinc was traded at RMB 20,050/mt. A limited number of downstream consumers were uneager to purchase goods from their expectations of lower zinc prices, and the wait-and-see sentiment dominated the market as a result.

LME zinc prices still showed an unclear trend, and slipped after moving higher, with prices ending at USD 2,510/mt finally. SMM predicts SHFE three-month contract zinc prices will move in the RMB 20,400-20,800/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