SMM Morning Review - 2010/1/20 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/20 Zinc Market

SMM Insight 11:27:44AM Jan 20, 2010 Source:SMM

SHANGHAI, Jan. 20 (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. 19th
2,525
-21
78,405
226,496
487,775

SHFE Market

 
Zinc – Spot Month (RMB/mt)
RMB/USD
SHFE Close
Settlement
Weighted Ave.
Jan. 18th               
20,190
20,065
20,069
1:6.8272
Jan. 19th                
20,580
20,435
20,283
1:6.8270

 
Zinc – 3mth (RMB/mt)
Shanghai Spot
#0 Zinc Ingot
SHFE Close
Settlement
Weighted Ave.
Jan. 18th               
20,550
20,415
20,415
19,955
Jan. 19th                  
20,950
20,790
20,596
20,275

Summary

On Tuesday, all major SHFE zinc contracts opened high, and moved higher, with trading sentiment brisk, Positions of SHFE 1005 zinc contract increased by more than 33,000 lots, and SHFE 1005 zinc contract prices closed at RMB 21,145/mt, up 2.7%, and technical indicators show SHFE three-month contract zinc prices moved around 5-day moving average line, and SMM predicts SHFE zinc prices will move narrowly around RMB 21,000/mt in the future.

However, spot market was neutral. #0 zinc was traded in the RMB 20,250-20,300/mt range, and #1 zinc was treaded around RMB 20,200/mt in Shanghai market. SHFE zinc prices fell from high levels, helping raise difficulties in spot transactions, and spot discounts were RMB 500/mt against SHFE 1004 zinc contract as a result. Both smelters and traders held high interest in moving goods, but downstream buying interest was low in anticipation of lower zinc prices below RMB 20,000/mt.

LME zinc prices bottomed out, with higher buying interest below USD 2,500/mt. Meanwhile, market players were waiting for the trade data to be released by China's Central Government on Thursday, including industrial output and other key economic indicators, and zinc prices are expected to receive support in the near term. SMM predicts traded prices of spot zinc will be around RMB 20,500/mt 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 - 2010/1/20 Zinc Market

SMM Insight 11:27:44AM Jan 20, 2010 Source:SMM

SHANGHAI, Jan. 20 (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. 19th
2,525
-21
78,405
226,496
487,775

SHFE Market

 
Zinc – Spot Month (RMB/mt)
RMB/USD
SHFE Close
Settlement
Weighted Ave.
Jan. 18th               
20,190
20,065
20,069
1:6.8272
Jan. 19th                
20,580
20,435
20,283
1:6.8270

 
Zinc – 3mth (RMB/mt)
Shanghai Spot
#0 Zinc Ingot
SHFE Close
Settlement
Weighted Ave.
Jan. 18th               
20,550
20,415
20,415
19,955
Jan. 19th                  
20,950
20,790
20,596
20,275

Summary

On Tuesday, all major SHFE zinc contracts opened high, and moved higher, with trading sentiment brisk, Positions of SHFE 1005 zinc contract increased by more than 33,000 lots, and SHFE 1005 zinc contract prices closed at RMB 21,145/mt, up 2.7%, and technical indicators show SHFE three-month contract zinc prices moved around 5-day moving average line, and SMM predicts SHFE zinc prices will move narrowly around RMB 21,000/mt in the future.

However, spot market was neutral. #0 zinc was traded in the RMB 20,250-20,300/mt range, and #1 zinc was treaded around RMB 20,200/mt in Shanghai market. SHFE zinc prices fell from high levels, helping raise difficulties in spot transactions, and spot discounts were RMB 500/mt against SHFE 1004 zinc contract as a result. Both smelters and traders held high interest in moving goods, but downstream buying interest was low in anticipation of lower zinc prices below RMB 20,000/mt.

LME zinc prices bottomed out, with higher buying interest below USD 2,500/mt. Meanwhile, market players were waiting for the trade data to be released by China's Central Government on Thursday, including industrial output and other key economic indicators, and zinc prices are expected to receive support in the near term. SMM predicts traded prices of spot zinc will be around RMB 20,500/mt 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