Home / Metal News / Zinc / Zinc imports to weigh on domestic prices as import arbitrage opens
Zinc imports to weigh on domestic prices as import arbitrage opens
May 3,2018 16:22CST
smm insight
Source:SMM
An inflow of imported zinc is likely to weigh on domestic prices following the arbitrage window opened in May.

SHANGHAI, May 3 (SMM) – An inflow of imported zinc is likely to weigh on domestic prices after the arbitrage window opened in May.

Several factors contributing to the opening of the arbitrage window include a delivery of 56,500 mt into LME warehouses last month, a declining social inventory in China amid the high season, and the value-added tax (VAT) cut in China. This has led the SHFE/LME price ratio to rise.  

Small amounts of zinc including materials from Australia, South Korea and Spain were heard in the Shanghai market on Thursday May 3, as import losses have narrowed to just 50-70 yuan/mt last night.

Offers of these materials were mostly about 30 yuan/mt below those of the domestic 0# common brand. It takes about a week for imported zinc to be delivered from bonded areas.

However, spot trading was thin on Thursday as buyers held back due to sufficient supply and high spot premiums. The 0# common brands were heard traded at a premium of 210-230 yuan/mt over the SHFE 1806 contract, while Shuangyan traded at premiums of 220-250 yuan/mt.

 


For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn 

zinc imports

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news