Zhejiang Sigma to Commission Zinc Alloy Project with 5,000 tonne Monthly Output in Early August, SMM Reports

Total zinc ingots inventories across seven major markets in China stood at 284,100 mt as of April 15, up 6,100 mt from April 8, down 3,700 mt from April 11.

Shanghai base metals mostly trended lower on Tuesday morning after US dollar rallied significantly. Meanwhile, their counterparts on LME performed similarly.

Shanghai nonferrous metals mostly closed in the positive territory as the market was cheered up by the macro front, as China released its December official manufacturing and non-manufacturing PMI readings, which topped market expectation.

SHFE and LME zinc prices once again hit new highs in two months, mainly owing to the continuously rising electricity and natural gas prices which rose by more than 20% amid intensifying energy shortages in the eurozone, according to SMM. Meanwhile, the costs of smelters also climbed due to low zinc concentrate TCs as a result of tight supply.

Market focus this week includes the readings of the manufacturing PMI in the Eurozone in November and the Markit manufacturing PMI in the United States in November; the one-year loan market interest rate as of November 22 in China. On the events front, the Federal Reserve FOMC will release the minutes of the monetary policy meeting this Thursday; Bank of England Governor Bailey will deliver a speech this Friday.

Shanghai base metals basically trended higher on Tuesday morning amid extended power rationing. Meanwhile, their counterparts on LME mostly fell.

Production costs of die-casting alloy enterprises continued to climb due to rising raw material prices, creating great pressures to daily production and operation. As such, zinc die-casting alloy enterprises have started to consider lifting processing fees.

Domestic die-cast zinc alloy producers plan to suspend production due to the 7-day National Day holiday, SMM understands.

Zhejiang has suffered from environmental protection checks after release of the Notice Regarding Closures of Electroplating Plants in Yiwu City for Rectifications by Yiwu Environmental Protection Bure

Yiwu Environmental Protection Bureau ordered alloy producers to close for rectification August 14, 2017. Electroplaters whose alloy raw materials contain high cadmium were majorly affected.