Continuous Surge in LME Zinc Inventories Further Weigh down LME Zinc Price, SMM Reports

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.

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

The price spread between domestic and imported zinc has narrowed recently, SMM noted.

LME zinc inventories fell to a 9-year low of 311,925 tonnes on Monday as markets expect demand from steel plants to increase, wenhua.com reported.

Combined zinc inventories in Shanghai, Tianjin and Guangdong added 2,100 to 295,200 tonnes this past week.

Combined zinc inventories in Shanghai, Tianjin and Guangdong added 2,000 to 293,100 tonnes this past week, SMM data show.

Combined zinc inventories in Shanghai, Tianjin and Guangdong fell 9,000 to 309,800 tonnes this week, according to SMM data.

Combined zinc inventories in Shanghai, Tianjin and Guangdong fell 1,800 to 318,800 tonnes this week, according to SMM data.

The price spread on #0 zinc between Guangdong and Shanghai expanded from 50-90 yuan to above 100 yuan per tonne this week, SMM reports.

Combined zinc inventories in Shanghai, Tianjin and Guangdong fell 1,300 to 328,900 tonnes this week, SMM data show.