[Zn Price] LME Zinc Price to Find Solid Support from $2,000 Next Week, SMM Foresees

Published: Jul 3, 2015 14:57

Save

LME zinc prices are expected to find solid support from $ 2,000 per tonne next week, SMM zinc analyst foresees, expecting prices to move between $ 2,000-2,060 per tonne.

SHANGHAI, Jul. 3 (SMM) - LME zinc prices are expected to find solid support from $ 2,000 per tonne next week, SMM zinc analyst foresees, expecting prices to move between $ 2,000-2,060 per tonne.

"Contango on LME zinc narrowed to $ 2-5 per tonne this past week, and improving market sentiment will also help LME zinc price stabilize”, SMM zinc analyst explains.

Investors should also keep a close watch on the Fed’s interest rate decision and Greek referendum result next week.

In China, SHEF 1509 zinc contract prices will fluctuate between 15,200-15,700 yuan per tonne next week.

Tumbling zinc prices have left smelters reluctant to sell. Zinc concentrate shortages in South China will also constrain production. When combined with maintenance at some smelters during July-August, zinc price will find some support. But any upward room for zinc prices is little.

Spot discounts over SHEF zinc contracts for September delivery should expand to 0-50 yuan per tonne on ample supply and soft demand.

"Sufficient supply from inflows of imported zinc and cargo holders, combined with the onset of the off-season will allow spot discounts to widen”, SMM zinc analyst says.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

LME zinc prices SHFE zinc prices zinc price forecast spot zinc prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

3 hours ago

SMM: Shanghai and Guangdong Bonded-Zone Primary Aluminum Inventory Rises to 117,300 MT

[SMM Domestic Bonded-Zone Primary Aluminum Inventory Statistics] On September 17, SMM reported primary aluminum inventory in the Shanghai bonded zone at 90,300 mt and in the Guangdong bonded zone at 27,000 mt, bringing total inventory to 117,300 mt, up 2,100 mt week over week.

3 hours ago

4 hours ago

Tightened compliance regulations push up costs, ADC12 prices drift higher [Aluminum Scrap and Secondary Aluminum Weekly Review]

[Aluminum Scrap and Secondary Aluminum Weekly Review: Tightening Compliance Supervision Raises Costs, ADC12 Prices Drift Higher] In terms of price spreads, on September 17, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,468 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was about 1,247 yuan/mt. The price spread for aluminum tense scrap narrowed again WoW. Supply side, the tight raw material supply pattern remained unchanged, and the scarcity of compliant, invoiced aluminum scrap continued to rise. Notably, tax audits in central China continued to intensify, and the sharp drop in regional aluminum scrap supply will significantly disrupt aluminum scrap circulation. On the import side, this week, the price of imported shredded aluminum at Ningbo port was raised from 21,370 yuan/mt to 21,470 yuan/mt (tax inclusive), while at Tianjin port it rose from 21,420 yuan/mt to 21,520 yuan/mt (tax inclusive).

4 hours ago

[SMM Analysis] China Aluminum Rod Inventory Stays High, Processing Fees Edge Up Amid Falling Prices

According to SMM statistics, as of September 11, days of in-factory inventories at aluminum rod plants in China recorded 8.06 days, up 0.43 days WoW

4 hours ago