Large Zinc Price Spread Precipitates Goods Transfer from Guangdong to 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

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

Spot trading in Shanghai zinc market weakened today, SMM noted.

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

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%.

Cargo holders held their quotes high since zinc inventories in Guangdong are still limited, SMM learns.

Spot premiums of regular zinc brands in Shanghai expanded 50-290 yuan per tonne to 390-430 yuan per tonne over September zinc on the SHFE, while spot premiums of Shuangyan branded #0 zinc narrowed 30-