SMM Zinc Weekly Price Review and Forecast (Jan. 6-10, 2014)

SHANGHAI, Jan. 7 (SMM) – In China's spot markets, spot discounts for #0 zinc against SHFE 1403 zinc contract prices were between RMB 40-80/mt, unchanged from the previous week. Traded prices for #0 zinc fell from RMB 15,140-15,190/mt, to RMB 15,100-15,140/mt, down by RMB 45/mt. Spot trading was quiet last week since most traders left the market ahead of the New Year holiday. Traders returned to the market after the holiday, and when combined with sufficient cash flows in early January, allowed spot transactions to improve, but with downstream buyers still purchasing as needed.

#0 zinc prices in Guangdong province were RMB 50-65/mt below Shanghai prices, trading between RMB 15,070-15,130/mt. Tianjin enterprises mainly consume galvanized products, so as the weather becomes colder, galvanizing demand is falling, which also lowers zinc demand. Regular zinc ingot prices in Tianjin were mostly RMB 15,080-15,090/mt, RMB 80/mt below Shanghai prices, while prices for Huludao branded zinc fell from RMB 16,050/mt, to RMB 16,010/mt.

Spot discounts against SHFE 1403 zinc contract prices will be RMB 0-100/mt this week.