SHANGHAI, Feb 12 (SMM) – Zinc prices may be under pressure after Chinese New Year as import losses narrow, SMM believes.
Operations at most domestic zinc smelters would remain normal during the week-long holiday, leaving inventory to increase continuously. In addition, over 200,000 mt of zinc imports in November and December last year would be entering the market.
As the SHFE/LME price ratio corrected upwards, import losses have become smaller and arbitrage opportunity may open after Chinese New Year. This would then give pressure to spot zinc prices.
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