SMM has undertaken further surveys covering the impact of the coronavirus outbreak issues in China on physical metals markets. We will be hosting a 4-session special webinar series over the next 2 weeks, focusing on the impact of the coronavirus outbreak on Wednesdays and Fridays, 5pm CST.
Our analysts will share their insights and outlook on the Chinese domestic market and look at how the virus outbreak will impact demand and supply of ferrous and nonferrous metals.
February 12 (Wednesday) 5pm CST: Macro overview with Copper and Zinc
Registration: https://register.gotowebinar.com/register/8327328738461958411
The coronavirus epidemic is set to take a toll on copper demand, while the impact on copper supply remains to be seen. That leaves China's copper market to be oversupplied in the near term, weighing on copper prices.
Production of copper cathode in China is estimated to slip to 701,300 mt in February, to produce a year-over-year decline of 2.54%. This will bring production in the first two months of 2020 to 1.43 million mt, down 1.96% year on year. China produced 725,900 mt of copper cathode last month, down 9.88% from December and 1.4% lower compared to a year earlier.
On the other hand, a potentially sharp increase in zinc social inventories are likely to further hammer zinc prices, after the recovery of logistical services allows cargoes to move from smelters to social warehouses.
Zinc inventories in China continued to increase after last week but build-up was limited, on the back of transportation curbs and delayed resumption of downstream operations. According to SMM data, social inventories of refined zinc across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei rose 28,300 mt from February 3 to stand at 217,300 mt as of Friday February 7.
We welcome you to join us on February 12, 5pm CST and find out more about the production and operation status of smelters, and what's happening in the nonferrous metals market in the midst of the coronavirus epidemic.
