Zinc Concentrates TCs for 2017 Term Shipments May Hit Record Low

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

This past week, spot TCs for domestic copper concentrate kept rising, according to SMM data.

The China Smelters Purchase Team (CSPT) set the floor price of spot TC/RC for copper concentrate at $95 per tonne (¢9.5 lb) for Q4 2017 at the meeting in Shanghai, Shanghai Metals Market learns. 

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

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.

What's the impact on copper supply from the strike?

SHFE 1705 zinc started at RMB 23,200/mt and ended at RMB 23,380/mt, up RMB 800/mt or 3.54%.

LME zinc will hover at highs on Wednesday and will move at USD 2,780-2,840/mt. SHFE 1705 zinc will fluctuate between RMB 22,800-23,300/mt.