Why Zinc Inventories Fall Sharply in Tianjin? How the 13th National Games Affect Downstream Producers? SMM Reports

On the one hand, Teck Resources has signed an annual zinc concentrate contract with a 45% increase in TCs to $230/dmt. An escalation clause was included: if the prices of zinc exceed $3,800/mt, TCs will rise by $0.05/mt for every $1/mt increase in the prices of LME zinc, but if the zinc prices fall, TCs will remain unchanged (the same as the 20%/80% price sharing scheme in China).

Total zinc ingots inventories across seven major markets in China stood at 278,000 mt as of April 8, up 5,200 mt from April 1, down 300 mt from March 6. Domestic inventories increased.

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.

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.

Market focus this week include: the annualised reading of new housing starts in the United States in August, the initial value of the manufacturing PMI in the Eurozone in September, and the initial value of the Markit manufacturing PMI in the United States in September; China's one-year loan market quotation interest rate as of September 22. In terms of events, FOMC will announced the interest rate resolutions this Thursday; the Fed Chairman Powell will hold a press conference; and the European Central Bank will announces an economic bulletin.

Traders continued to lower offers in China’s spot zinc market on Thursday May 10 as supply of imported zinc increased, SMM learned.

In China's spot zinc market on Wednesday May 9, smelters continued to lower offers after thinner transactions from the previous day

SHFE zinc tumbled during the day and touched a low at 23,605 yuan/mt on Thursday April 12 despite better fundamentals since the start of this month.

SMM Evening Comments