Shanghai Zinc to Consolidate Narrowly (2016-2-5)

Market focus this week include: the annualised reading of new housing starts in the United States in August, the initial value of the manufacturing PMI in the Eurozone in September, and the initial value of the Markit manufacturing PMI in the United States in September; China's one-year loan market quotation interest rate as of September 22. In terms of events, FOMC will announced the interest rate resolutions this Thursday; the Fed Chairman Powell will hold a press conference; and the European Central Bank will announces an economic bulletin.

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

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

LME zinc is expected to fluctuate between USD 1,850-1,900/mt today.

TCs of domestic zinc concentrate (50%) stabilized at 5,200-5,400 yuan per tonne (zinc content) this past week, and those for imported zinc concentrate (50%) were $110-130 per dry metric tonne (DMT)

Zinc market has been rising in recent days. Will the rising momentum continue? SMM surveys major 25 domestic galvanized plants for a whole picture of the market.

SHFE 1605 zinc contract prices opened at RMB 14,445/mt Tuesday evening.

Stock and commodity markets rose as risk appetite grew.

SMM survey of 30 industry insiders finds that about 87% are neutral.

SHFE 1604 zinc contract prices opened at RMB 13,660/mt on Tuesday evening and closed at RMB 13,655/mt, down RMB 60/mt.