LME Canceled Zinc Warrants Post Biggest Growth in 5 Weeks

SHANGHAI, Nov 3 (SMM) - The most-traded SHFE zinc contract hit its highest since September 2007 on October 18 after consolidating for nearly three months, but subsequently pulled back.

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.

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Canceled warrants on LME copper posted the biggest growth from June on September 18.

Canceled warrants on LME lead decreased to an 8-month low of 50,025 tonnes, according to the London Metal Exchange (LME).

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

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%.