SMM News: according to foreign news on May 20, the London Metal Exchange (LME) zinc hit a four-month low on Monday as investors worried about an increase in supply from China, the world's largest producer. Trade tensions between China and the United States have put pressure on industrial metals as a whole.
The), LME three-month zinc index closed down nearly 1.0 per cent at $2575 a tonne at 17:00 on May 20, London time. Earlier, zinc futures hit $2553, the lowest level since January 22.
Zinc prices have fallen about 9 per cent since May.
"there was another wave of selling this morning," said one zinc trader. The idea of a sharp increase in China's zinc supply in the second half of the year hit sentiment. "
"it looks as if the trade dispute will not be resolved in the short term and this uncertainty will continue to put pressure on the base metals," he said. "
Analysts expect Chinese zinc production to rise about 5 per cent from April to more than 560000 tonnes in May. With the increase in new capacity, higher production figures are expected in the second half of the year.
Analysts on average expect a surplus of 20, 000 tons this year after years of supply shortages, with an overall forecast of about 14 million tons, according to a survey released earlier in May.
With regard to Sino-US trade relations, in response to the US side saying that the United States and China have actually reached an agreement on economic and trade negotiations, but the Chinese side has broken the agreement, Foreign Ministry spokesman Lu Kang said on the 20th that he did not know what the "agreement" referred to by the US side was. It is futile for the US side to try to confuse the public and transfer responsibility.
Lu Kang said that the fundamental reason for the failure to reach an agreement in the 11 rounds of Sino-US economic and trade consultations is that the US side is trying to achieve unreasonable demands for interests through extreme pressure. This didn't work from the start.
LME copper for three-month delivery fell 0.45 per cent to $6029 a tonne after hitting $6004 earlier, its lowest level since January 29.
Three-month aluminium fell 2.1 per cent to $1797.5 a tonne.
The United States has finalized an agreement to eliminate tariffs on steel and aluminum imports from Canada and Mexico, removing the main obstacles to legislative ratification of the new North American Trade Agreement. The news put pressure on aluminum prices.
According to the agreements reached between the United States and Canada and Mexico, the United States will not set import quotas for steel and aluminum products from Canada and Mexico. At the same time, retaliatory tariffs imposed by Mexico and Canada on a wide range of US products, such as pork, beef and bourbon, will also be lifted.
Three-month lead fell 1.2 per cent to $1804 a tonne.
Three-month tin fell 0.3 per cent to $19450 a tonne.
Three-month nickel was not traded at the close, but its electronic system at LME fell 0.3 per cent to $11980.