Imported Zinc Influx in Shanghai to Decrease in July, 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.

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

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

Spot zinc trading improved in Guangdong today as traders purchased goods actively.

LME zinc inventories surged by 13,800 tonnes based on LME data, mainly at warehouses in Antwerp. 

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

Spot trading in Shanghai zinc market was actively today as both traders and downstream buyers showed strong buying interest, SMM reports

Spot trading in Shanghai market was weaker than yesterday as high zinc prices left downstream buyers on the sidelines, SMM reports.

Spot trading in Shanghai spot zinc market was dampened as SHFE zinc prices hovered at highs September 4, SMM reports.

Shanghai will see additional inflows of imported zinc in the near term due to import profit, SMM foresees.