SMM Morning Review - 2010/1/26 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/26 Zinc Market

SMM Insight 10:29:06AM Jan 26, 2010 Source:SMM

SHANGHAI, Jan. 26 (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. 25th  
2,318.5
-22
50,289
211,852
491,825

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. 25th                 
19,500
19,480
20,090
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. 25th                  
19,875
19,790
20,574
19,350

Summary

On Monday, #0 zinc was traded in the RMB 19,300-19,350/mt range in the Shanghai market, with discounts of RMB 400-500/mt against SHFE 1004 zinc contract. #1 zinc was traded around RMB 19,250/mt. SHFE zinc prices stabilized, but spot transactions reported no significant improvement, with the wait-and-see sentiment still prevailing among downstream consumers. Smelters moved goods limitedly.

As to futures market, SHFE zinc prices opened low, but fluctuated higher, and SHFE three-month contract zinc prices closed at RMB 20,025/mt, with the highest level at RMB 20,160/mt, and positions increased by nearly 13,000 lots to 171,000 lots. However, the weak performance of the US stocks weighed on zinc market. LME zinc prices have shown sluggish performance on January 25th, but increases in long positions on SHFE zinc market will help stabilize SHFE zinc prices today, with SHFE three-month contract zinc prices expected to test the support level of 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 - 2010/1/26 Zinc Market

SMM Insight 10:29:06AM Jan 26, 2010 Source:SMM

SHANGHAI, Jan. 26 (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. 25th  
2,318.5
-22
50,289
211,852
491,825

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. 25th                 
19,500
19,480
20,090
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. 25th                  
19,875
19,790
20,574
19,350

Summary

On Monday, #0 zinc was traded in the RMB 19,300-19,350/mt range in the Shanghai market, with discounts of RMB 400-500/mt against SHFE 1004 zinc contract. #1 zinc was traded around RMB 19,250/mt. SHFE zinc prices stabilized, but spot transactions reported no significant improvement, with the wait-and-see sentiment still prevailing among downstream consumers. Smelters moved goods limitedly.

As to futures market, SHFE zinc prices opened low, but fluctuated higher, and SHFE three-month contract zinc prices closed at RMB 20,025/mt, with the highest level at RMB 20,160/mt, and positions increased by nearly 13,000 lots to 171,000 lots. However, the weak performance of the US stocks weighed on zinc market. LME zinc prices have shown sluggish performance on January 25th, but increases in long positions on SHFE zinc market will help stabilize SHFE zinc prices today, with SHFE three-month contract zinc prices expected to test the support level of 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