SMM Morning Review - 2012/6/21 Zinc Market

The focus this week includes: The Fed’s FOMC meeting, coal price trends, final value of October Manufacturing PMI in Eurozone, final value of US October Markit Manufacturing PMI, October ISM Manufacturing PMI, October ADP Employment, October unemployment rate; China's October Caixin Manufacturing PMI and October Caixin Service PMI. In terms of events, FOMC will announce the interest rate resolutions this Thursday; the Fed Chairman Powell will hold a press conference; the Bank of England will announce interest rate resolutions, meeting minutes, and monetary policy reports; and European Central Bank President Lagarde and Executive Committee Member Schnabel will deliver speeches.

The price spread on zinc expanded 30 yuan per tonne between Guangdong and Shanghai today, SMM reported.

Many zinc traders contributed the surge in zinc market mainly to two factors, 21st Century Business Herald reported. 

SHFE 1710 zinc opened at RMB 26,110/mt and closed at RMB 25,930/mt, down RMB 35/mt or 0.13%.

The price spread between domestic and imported zinc has narrowed recently, SMM noted.

China imported 41,713 tonnes of refined zinc in June, a rise of 27.8% on the month, according to China Customs.

Chihong Zn & Ge adjusted its production plan to focus on high-purity zinc production in 2017 due to higher prices of the products, cnmn.com reported.

SHFE 1705 zinc opened at RMB 23,580/mt and closed at RMB 23,425/mt, up RMB 435/mt or 1.89%.

SHFE 1705 zinc started at RMB 23,200/mt and ended at RMB 23,380/mt, up RMB 800/mt or 3.54%.

LME zinc will hover at highs on Wednesday and will move at USD 2,780-2,840/mt. SHFE 1705 zinc will fluctuate between RMB 22,800-23,300/mt.