SMM Zinc Market Morning Review (2015-7-9)

Published: Jul 09, 2015 09:25 (GMT+8)

Save

LME zinc prices opened at USD 1,960/mt Wednesday, then slumped by daily limit at one point on market pessimism from China’s A-share market, dipping to a new low of USD 1,906/mt since December 2013.

SHANGHAI, Jul. 9 (SMM) – LME zinc prices opened at USD 1,960/mt Wednesday, then slumped by daily limit at one point on market pessimism from China’s A-share market, dipping to a new low of USD 1,906/mt since December 2013. Nonetheless, with a release of stimulus measures from China, investor confidence improved, allowing LME zinc prices to regain early losses and close at USD 1,980/mt, up USD 26.5/mt or 1.36%. Trading volumes decreased 2,102 to 17,263 lots, and total positions grew 4,854 to 300,000. LME zinc inventories fell 1,425 to 460,000 mt.

SHFE 1509 zinc contract prices opened at RMB 14,750/mt Wednesday evening, then rallied to fluctuate between RMB 14,900-15,000/mt, and closed at RMB 14,985/mt, up RMB 225/mt or 1.52%. Trading volumes decreased 140,000 to 110,000 lots, and total positions declined over 10,000 to 127,600. LME zinc inventories fell 1,425 to 460,000 mt.

The market should keep a close watch on China’s A-share market today. LME zinc prices should move between USD 1,965-1,995/mt today, and SHFE 1509 zinc contract prices will fluctuate between RMB 14,950-15,050/mt, with spot premiums of RMB 80-130/mt against SHFE 1509 zinc contract prices.

LME zinc prices SHFE 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

11 hours ago

METLEN Invests €25M in Greek Recycled Aluminum Plant, Boosting Scrap Processing and Integration

[SMM Aluminum Express News] METLEN Energy & Metals will invest nearly €25 million in its EP.AL.ME. recycled aluminum operation in Greece, installing highly automated sorting, processing and melting equipment. The upgrade will allow EP.AL.ME., Greece’s largest independent recycled aluminum producer, to process more complex scrap streams, particularly post-consumer scrap recovered from end-of-life products that has previously been difficult to incorporate efficiently. The investment will more closely integrate EP.AL.ME. with METLEN’s Aluminium of Greece primary aluminum plant, with combined production expected to exceed 250,000 tonnes once the project is fully developed. EP.AL.ME. will act as the collection, sorting and scrap pre-processing hub, while Aluminium of Greece will incorporate recycled metal into higher-value aluminum products. METLEN said the integration should also improve margins at both operations.

11 hours ago

LME Aluminum Inventory Declines 0.31% to 241,400 mt on September 23

[SMM Aluminum Flash] On September 23, LME aluminum inventory stood at 241,400 mt, down 750 mt from the previous day, a decrease of 0.31%. Over the past week, LME aluminum inventory decreased by 2,225.00 mt, a decline of 0.91%. Over the past month, LME aluminum inventory decreased by 5,550.00 mt, a decline of 2.25%.

11 hours ago

Azerbaijan Plans New 200,000 t/y Aluminum Smelter, Attracts Foreign Investors

[SMM Aluminum Express News] Azerbaijan is exploring a separate new primary aluminum smelter with capacity of around 200,000 tonnes/year, Economy Minister Mikayil Jabbarov said at a September 22 meeting chaired by President Ilham Aliyev. The project has attracted interest from foreign investors and forms part of Azerbaijan’s longer-term ambition to develop into a regional processing hub, supported by competitive energy prices, transport links and access to raw materials from Central Asia and the South Caucasus. The proposed 200,000 t/y smelter is separate from Azeraluminium’s existing expansion in Ganja, where electrolysis capacity is planned to increase from around 50,000 t/y to 100,000 t/y by 2030. Azerbaijan will also assess whether the Zaylik alunite deposit can provide a domestic raw-material base for the aluminum value chain. The 2027-2030 mining and metallurgy programme requires an estimated AZN 5.3 billion (US$3.12 billion) of investment, around 80% of which is expected from non-budget sources.

11 hours ago