SMM Morning Review - 2010/1/25 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/25 Zinc Market

SMM Insight 11:33:49AM Jan 25, 2010 Source:SMM

SHANGHAI, Jan. 25 (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. 22nd  
2,340
-20
55,199
210,168
491,200

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. 22nd                 
19,530
19,475
20,260
1:6.8271

 
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. 22nd                 
19,810
19,975
20,610
19,500

Summary

Last Friday (January 22nd), SHFE zinc prices opened low and moved lower, and SHFE three-month contract zinc prices broke through 30-day moving average line and fell below RMB 20,000/mt, with prices ending at RMB 19,930/mt, and with signs of falling in the short term. The constant declines in SHFE zinc prices exerted downward pressure on spot zinc markets. #0 zinc was traded between RMB 19,500-19,550/mt, and #1 zinc was traded around RMB 19,500/mt last Friday in Shanghai market. However, spot zinc prices fell to RMB 19,600/mt at noon following SHFE three-month contract zinc price trends, with the lowest offers for #0 zinc heard as low as RMB 19,280/mt in the afternoon, but trading volumes were limited. Downstream consumers still took a cautious attitude toward transactions due to their pessimistic market outlook. Smelters held low interest in selling goods with zinc prices below RMB 20,000/mt, with goods in the market mainly for hedge.

The President Barack Obama planed to restrict the US bank trading last Friday, and China's National Bureau of Statistics released on January 21st that China's GDP for 2009 rose by 8.7%. The strong economic data further generated market concerns over the possible tightening of monetary policy, weighing on commodities markets. SMM predicts SHFE zinc prices will remain on a downward track today, with SHFE 1005 zinc contract prices struggling at RMB 20,000/mt.

 

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 - 2010/1/25 Zinc Market

SMM Insight 11:33:49AM Jan 25, 2010 Source:SMM

SHANGHAI, Jan. 25 (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. 22nd  
2,340
-20
55,199
210,168
491,200

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. 22nd                 
19,530
19,475
20,260
1:6.8271

 
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. 22nd                 
19,810
19,975
20,610
19,500

Summary

Last Friday (January 22nd), SHFE zinc prices opened low and moved lower, and SHFE three-month contract zinc prices broke through 30-day moving average line and fell below RMB 20,000/mt, with prices ending at RMB 19,930/mt, and with signs of falling in the short term. The constant declines in SHFE zinc prices exerted downward pressure on spot zinc markets. #0 zinc was traded between RMB 19,500-19,550/mt, and #1 zinc was traded around RMB 19,500/mt last Friday in Shanghai market. However, spot zinc prices fell to RMB 19,600/mt at noon following SHFE three-month contract zinc price trends, with the lowest offers for #0 zinc heard as low as RMB 19,280/mt in the afternoon, but trading volumes were limited. Downstream consumers still took a cautious attitude toward transactions due to their pessimistic market outlook. Smelters held low interest in selling goods with zinc prices below RMB 20,000/mt, with goods in the market mainly for hedge.

The President Barack Obama planed to restrict the US bank trading last Friday, and China's National Bureau of Statistics released on January 21st that China's GDP for 2009 rose by 8.7%. The strong economic data further generated market concerns over the possible tightening of monetary policy, weighing on commodities markets. SMM predicts SHFE zinc prices will remain on a downward track today, with SHFE 1005 zinc contract prices struggling at RMB 20,000/mt.

 

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