Zinc to See Range-Bound Trading Next Week, SMM Says

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.

SHFE zinc climbed up unexpectedly on Monday May 7 as it traded without being weighed down by its LME counterpart

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

After SHFE zinc prices rose, traders mostly took a wait-and-see attitude in the spot market, SMM reported.

Spot premiums in Guangdong surpassed those in Shanghai as of August 30.

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%.

Spot premiums of regular zinc brands in Shanghai expanded 50-290 yuan per tonne to 390-430 yuan per tonne over September zinc on the SHFE, while spot premiums of Shuangyan branded #0 zinc narrowed 30-

Spot premiums for regular #0 zinc saw mixed trend today.

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