Large Zinc Price Spread Precipitates Goods Transfer from Guangdong to Shanghai, SMM Reports

Total zinc inventory across seven Chinese markets stood at 131,600 mt as of December 6, up 1,500 mt from Friday December 3, but down 1,700 mt from Monday November 29.

Total zinc inventories across seven Chinese markets stood at 128,700 mt as of November 19, down 2,600 mt from November 12 and 6,500 mt from November 15.

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.

Total zinc inventories across seven Chinese markets stood at 147,200 mt as of October 18, up 8,100 mt from Friday October 15 and 10,600 mt from last Monday October 11.

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.

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

Downstream buyers and traders preferred imported goods as imported zinc was sufficient in Shanghai which held price advantage, SMM reports.

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