China Zinc Supply Not Hurt despite Big Fall in Zinc Imports, SMM Reports

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.

An inflow of imported zinc is likely to weigh on domestic prices following the arbitrage window opened in May.

China’s refined zinc imported increased 159.3% year-on-year to 65,609 tonnes in August, China Customs data showed.

China’s refined zinc imports witnessed a big growth in August.

Traders and downstream buyers were both very reticent in the spot market today due to big volatility in zinc price, SMM reported.

Spot premiums on #0 zinc narrowed 100 yuan per tonne to 400-600 yuan per tonne today due to inflows of imported zinc.

Spot premiums remained firm today due to limited supply of spot zinc and steady downstream consumption, SMM reports.

Spot trading in Shanghai zinc market improved today due to active trading among traders under term contracts, SMM reported.

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

Spot premiums narrowed 50 to 350-400 yuan per tonne over September zinc on the SHFE on September 5.