LME Zinc Hits Nearly 10-Year High on China Reason

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

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.

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

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

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

Many zinc traders contributed the surge in zinc market mainly to two factors, 21st Century Business Herald reported. 

SHFE 1710 zinc opened at RMB 26,110/mt and closed at RMB 25,930/mt, down RMB 35/mt or 0.13%.