Did Strong Earthquake in Xinjiang Impact Local Aluminum Plants and Lead-Zinc Mines? SMM Reports

On the one hand, Teck Resources has signed an annual zinc concentrate contract with a 45% increase in TCs to $230/dmt. An escalation clause was included: if the prices of zinc exceed $3,800/mt, TCs will rise by $0.05/mt for every $1/mt increase in the prices of LME zinc, but if the zinc prices fall, TCs will remain unchanged (the same as the 20%/80% price sharing scheme in China).

Total zinc ingots inventories across seven major markets in China stood at 278,000 mt as of April 8, up 5,200 mt from April 1, down 300 mt from March 6. Domestic inventories increased.

Shanghai and LME metals all closed in the positive territory as the market awaits the US CPI, which is expected to record the fastest growth in 40 years.

LME lead prices dropped during the Chinese New Year (CNY) holiday. As of February 4, LME lead closed at $2210.5/mt, down $39.5/mt or 1.76% on a weekly basis.

Shanghai nonferrous metals closed mixed in the last trading day ahead of the Chinese New Year. The market was basically in the holiday mood, while the better-than-expected US GDP reading for the past quarter aroused some discussions.

Shanghai nonferrous metals closed mixed today ahead of the US Fed’s interest rate meeting, and the market generally believed that the first interest rate hike will happen in March. Meanwhile, the tension between Russia and Ukraine also disturbed the market

The LME lead fell for two days early last week, risking $2,316.5/mt, and then kept rising for two straight days in the second half of the week, before pulling back slightly on Friday.

Shanghai base metals fell across the board overnight after the investors left the market with profits. LME metals performed similarly on Tuesday.

Shanghai base metals closed mixed on Friday night ahead of the US Fed’s interest meeting. LME metals basically dropped in the trading on Friday.

Shanghai nonferrous metals all closed with gains as the quarterly report released by the People's Bank of China signalled loosening monetary policy.