SMM Morning Review - 2010/1/27 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/1/27 Zinc Market

SMM Insight 10:21:50AM Jan 27, 2010 Source:SMM

SHANGHAI, Jan. 27 (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. 26th  
2,325
-22
72,938
212,502
493,925

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. 26th                
18,900
19,295
19,943
1:6.8269

 
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. 26th                 
19,195
19,545
20,515
19,200

Summary

On Tuesday, SHFE zinc prices opened high, but declined gradually following domestic A-share stock market. SHFE 1005 zinc contract prices closed at RMB 19,390/mt, down 2.8%, with prices falling below 60-day moving average line. Trading sentiment was brisk, and positions increased by 44,990 lots, with short positions up significantly.

The weak performance of SHFE zinc prices affected spot zinc markets negatively. #0 zinc was traded around RMB 19,200/mt on yesterday morning, with spot discounts at RMB 400/mt against SHFE 1004 zinc contract, while #1 zinc was traded between RMB 19,100-19,150/mt. Spot discounts were RMB 400/mt in the afternoon, with spot zinc prices at RMB 19,000/mt. Although market players had limited interest in purchases, the pessimistic sentiment prevailed among downstream consumers, resulting in lukewarm transactions.

Technically, SHFE zinc prices moved below average lines, with signs of declining, and SHFE zinc prices showed the weakest performance among base metals. Spot zinc prices will fall to RMB 18,000/mt after this round of reductions. SMM believes SHFE zinc prices will stand firm at RMB 19,000/mt, if LME zinc prices can stand firm at USD 2,300/mt on January 26th, and SHFE 1005 zinc contract prices will move narrowly in the RMB 19,300-19,600/mt range.

To contact the writer on this report: monicagao@smm.cn

 

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 - 2010/1/27 Zinc Market

SMM Insight 10:21:50AM Jan 27, 2010 Source:SMM

SHANGHAI, Jan. 27 (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. 26th  
2,325
-22
72,938
212,502
493,925

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. 26th                
18,900
19,295
19,943
1:6.8269

 
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. 26th                 
19,195
19,545
20,515
19,200

Summary

On Tuesday, SHFE zinc prices opened high, but declined gradually following domestic A-share stock market. SHFE 1005 zinc contract prices closed at RMB 19,390/mt, down 2.8%, with prices falling below 60-day moving average line. Trading sentiment was brisk, and positions increased by 44,990 lots, with short positions up significantly.

The weak performance of SHFE zinc prices affected spot zinc markets negatively. #0 zinc was traded around RMB 19,200/mt on yesterday morning, with spot discounts at RMB 400/mt against SHFE 1004 zinc contract, while #1 zinc was traded between RMB 19,100-19,150/mt. Spot discounts were RMB 400/mt in the afternoon, with spot zinc prices at RMB 19,000/mt. Although market players had limited interest in purchases, the pessimistic sentiment prevailed among downstream consumers, resulting in lukewarm transactions.

Technically, SHFE zinc prices moved below average lines, with signs of declining, and SHFE zinc prices showed the weakest performance among base metals. Spot zinc prices will fall to RMB 18,000/mt after this round of reductions. SMM believes SHFE zinc prices will stand firm at RMB 19,000/mt, if LME zinc prices can stand firm at USD 2,300/mt on January 26th, and SHFE 1005 zinc contract prices will move narrowly in the RMB 19,300-19,600/mt range.

To contact the writer on this report: monicagao@smm.cn

 

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