Buying Appetite for Zinc Strengthens on Transport Restrictions before 13th National Games, 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

Zinc prices maintained upward momentum in 2017, thanks to the fundamental story. LME zinc refreshed a 10-year high, and SHFE zinc jumped above 27,000 yuan per tonne, up over 20% so far this year.

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.

LME zinc is expected to move between USD 3,025-3,070/mt today.

LME zinc contango turned into a backwardation of USD 29.5/mt.

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.

Spot premiums on copper were quoted at 100-140 yuan per tonne on September 15, the highest from April 21, according to SMM data.

Spot trading in Shanghai copper market is quiet today as SHFE copper rose, SMM said.