SMM Morning Review - 2010/5/25 Zinc Market-Shanghai Metals Market

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SMM Morning Review - 2010/5/25 Zinc Market

SMM Insight 10:16:23AM May 25, 2010 Source:SMM

SHANGHAI, May 25 (SMM) -- LME Market

 
Close
(USD/mt)
Premium/Discount
Volume
(lot)
Position
(lot)
Inventory
(mt)
3-mth Contract
Spot – 3 mth
Apr. Average
2,404
-33
68,089
238,375
545,240
May 24th
1,920
-29
77,408
242,235
586,650

SHFE Market

 
Zinc – Spot Month (RMB/mt)
RMB/USD
SHFE Close
Settlement
May 17th
15,665
15,735
1:6.8275
May 24th
15,720
15,525
1:6.8277
 

 
Zinc – 3mth (RMB/mt)
Shanghai Spot
#0 Zinc Ingot
SHFE Close
Settlement
May 17th
15,970
16,165
15,700
May 24th
16,035
15,805
15,525

Summary

The National Association of Realtors (NAR) released on Monday that existing home sales in April climbed by 7.6% to an annual rate of 5.77 million as buyers rushed to qualify for an expiring government tax credit, while existing home sales in March were an annual rate of 5.36 million. The positive existing home sales helped push up the US stocks last night, and metals prices advanced as well driven up by US stocks, with LME three-month zinc contract prices finally closing at USD 1,920/mt. 

However, Spain's central bank took control on Saturday of a troubled regional savings bank, spurring market concerns that Greece's debt crisis is spreading, and the euro dipped against the US dollar as a result. In addition, LME zinc inventories soared by nearly 20 kt to 587 kt, also weighing down zinc prices in the short term. SHFE zinc prices jumped by 4.5%, with prices near the daily price limits. However, spot zinc prices rose at a slower pace compared with SHFE zinc prices, and SMM predicts SHFE three-month zinc contract prices will move around RMB 16,000/mt today, with pressure expected to the 10-day moving average.   

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:  zinc price   zinc Zn 

SMM Morning Review - 2010/5/25 Zinc Market

SMM Insight 10:16:23AM May 25, 2010 Source:SMM

SHANGHAI, May 25 (SMM) -- LME Market

 
Close
(USD/mt)
Premium/Discount
Volume
(lot)
Position
(lot)
Inventory
(mt)
3-mth Contract
Spot – 3 mth
Apr. Average
2,404
-33
68,089
238,375
545,240
May 24th
1,920
-29
77,408
242,235
586,650

SHFE Market

 
Zinc – Spot Month (RMB/mt)
RMB/USD
SHFE Close
Settlement
May 17th
15,665
15,735
1:6.8275
May 24th
15,720
15,525
1:6.8277
 

 
Zinc – 3mth (RMB/mt)
Shanghai Spot
#0 Zinc Ingot
SHFE Close
Settlement
May 17th
15,970
16,165
15,700
May 24th
16,035
15,805
15,525

Summary

The National Association of Realtors (NAR) released on Monday that existing home sales in April climbed by 7.6% to an annual rate of 5.77 million as buyers rushed to qualify for an expiring government tax credit, while existing home sales in March were an annual rate of 5.36 million. The positive existing home sales helped push up the US stocks last night, and metals prices advanced as well driven up by US stocks, with LME three-month zinc contract prices finally closing at USD 1,920/mt. 

However, Spain's central bank took control on Saturday of a troubled regional savings bank, spurring market concerns that Greece's debt crisis is spreading, and the euro dipped against the US dollar as a result. In addition, LME zinc inventories soared by nearly 20 kt to 587 kt, also weighing down zinc prices in the short term. SHFE zinc prices jumped by 4.5%, with prices near the daily price limits. However, spot zinc prices rose at a slower pace compared with SHFE zinc prices, and SMM predicts SHFE three-month zinc contract prices will move around RMB 16,000/mt today, with pressure expected to the 10-day moving average.   

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:  zinc price   zinc Zn