Fund Managers to Unload Net Long of LME Zinc Slightly

The moves of SHFE and LME have been heading toward different directions recently. As of December 8, LME lead has been falling for five consecutive sessions. SHFE lead, on the other hand, rallied strongly after falling for two days in a row, and rose 1.88% to 15,175 yuan/mt to close the day.

Market focus this week includes the readings of the manufacturing PMI in the Eurozone in November and the Markit manufacturing PMI in the United States in November; the one-year loan market interest rate as of November 22 in China. On the events front, the Federal Reserve FOMC will release the minutes of the monetary policy meeting this Thursday; Bank of England Governor Bailey will deliver a speech this Friday.

According to SMM research, domestic monthly output of zinc concentrate continued to rise since March, 2021. The TCs for imported ore led the downward correction since late August, and the TCs for domestic ore fell since end of September. The current supply of ore was still tight even the smelting capacity has been constrained by the power rationing. The TCs are likely to drop further in Q4.

Nickel stocks across LME-approved warehouses gained 2,874 mt on Monday to 69,180 mt

SMM Morning Comments

SMM Evening Comments

SMM Evening Comments

SMM Morning Comments (Dec 28)

A new wave of price increase seems to have been formed with 13 tyres companies releasing such notices since Dec.1st.

As per data released by LME on Thursday. LME Lead inventory is 145,075 tons, setting new low during past two years.