Home / Metal News / SMM Forecast For Zinc Prices This Week

SMM Forecast For Zinc Prices This Week

iconJun 26, 2023 16:22
Source:SMM
Zinc ingot prices were weak from June 19-21 as domestic stimulus policy failed to pay off as expected. There has been no significant change in overseas fundamentals. The contango structure of LME cash to the three-month contract expanded from zero to $17/mt.

Zinc ingot prices were weak from June 19-21 as domestic stimulus policy failed to pay off as expected. There has been no significant change in overseas fundamentals. The contango structure of LME cash to the three-month contract expanded from zero to $17/mt.

In China, downstream stockpiling ahead of the Chinese Dragon Boat Festival holidays during June 22-24 drove inventories to decline slightly. But spot premiums were low. A large volume of available imported zinc ingots including SMC, YP, Peruvian and Kazakhstan zinc offset the domestic inventory declines.

Any reopening of the import window will add to supply pressure. Small and medium-sized galvanising and die-casting plants closed for up to four days for the Dragon Boat Festival holidays. The overall fundamentals were weak.

SHFE 2307 zinc contract prices are expected to move between 19,500-20,400 yuan/mt this week, and LME zinc will trade between $2,250-2,450/mt. Spot premiums in Shanghai will stand at 150-220 yuan/mt.


Market forecast

For queries, please contact Michael Jiang at michaeljiang@smm.cn

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

Related news