Imported Zinc May Weigh down Zinc Spot Premiums in Shanghai, 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.

SHFE zinc climbed up unexpectedly on Monday May 7 as it traded without being weighed down by its LME counterpart

Spot premiums on zinc in Shanghai fell rapidly in the latter half of this week as traders sold actively to generate cash before the upcoming Chinese National Day holiday.

Spot premiums on #0 zinc shrank sharply from 580-750 yuan per tonne early this week to 400-450 yuan per tonne over SHFE October zinc in Tianjin on September 22, SMM reported.

Spot premiums in Tianjin narrowed from 580-750 yuan per tonne last week to 480-600 yuan per tonne September 18, SMM finds.

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

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.