Zn – Premium rose sharply and import cost increased, with profit space being narrowed

Date Sep 19 2018 15:55:06Source:SHMET

Zinc Premiums in Shanghai bonded warehouse quoted at $330-$360/mt and CIF shanghai stood at $320-$350/mt, up $65 from the last trading day. SHFE /LME spot zinc price ration is at 9.13. Today LME C-3m rose 23C, the spot zinc ingot import loss is RMB99/mt in the current month and 3m import loss in forward market is around RMB1272/mt lost. Custom duty exempt brands, Australian and Korean had a profit of RMB39/mt in spot import market, but it loses RMB1292mt in forward import.


In the domestic spot market, domestic zinc ingots rose by 900 yuan/ton in two days, and the price of imported zinc ingots rose by 880 yuan/ton. The premiums reported by the cargo holders of the dollar goods rose closely with the market, and the profit level of imported zinc prices narrowed sharply. Under the premium level, only the duty-free brand in the current month is slightly profitable, but the current foreign trade market inquiry performance is still relatively active. If the premium level continues to rise, the foreign trade market may be cooled.


Edited by SHMET

【Cu Daily】Macro rebounds are fierce, market oscillation strengthens

Date Sep 19 2018 15:39:11Source:SHMET

Spot Market

Resources at spot market remain tight balance pattern today. SX-EW resource is still few, while good grade copper and copper of standard resources are ample. With high backwardation, downstream enterprises are cautious in receiving goods. Good grade copper is quoted at around 340+ at morning session. But it slips near noon and remains at 320.


Comments from SHMET


Macro mood veers quickly. Stocks and nonferrous metals soar up. Downstream enterprises are cautious in receiving spot goods as offers are at high levels. Deliveries from traders increase and inventory builds up.

Edited by SHMET

Cu-Premium remains high, import profit narrows

Date Sep 19 2018 15:14:11Source:SHMET

Premiums for CIF in Shanghai came to $105-$120/mt, and that for Shanghai bonded warehouse was at $110-$130/mt. SHFE Spot/LME 3M arb was at 8.17, whilst 3M SHFE/3M LME arb came to 8.05. LME C-3m valued was $22C, with a spot import gain of around RMB327/mt and a loss in forward market of about RMB617/mt.


Foreign trade spot continues soaring up, while import profit narrows. QP has been quoted at November. Market transactions are insipid. Arrivals in October will be intensively. Therefore, current goods are in vacuum phase.

Edited by SHMET

Al–The dollar fell for a 2nd straight day and import cost of aluminum ingots slightly fell

Date Sep 19 2018 14:09:29Source:SHMET

Traders reported that spot premiums CIF shanghai remained at level $95-$115 as usual, so did the physical warrants. LME C-3m valued edged to 34.5 C. SHFE Spot/LME 3M arb flattened out at 7.20, suggesting importing may lose around RMB 2428/mt in spot market and RMB2696/mt in forward market.


The dollar fell for a second straight day and the yuan strengthened against the dollar as investors began to worry about the broader impact of the tariff on the US economy. The import cost of aluminum ingots in RMB fell slightly and the amount of import loss also decreased.

Edited by SHMET

【Zn Morning】Zinc open higher and intraday zinc price running with a strength

Date Sep 19 2018 10:40:08Source:SHMET

Overnight LME zinc opened lower and trended higher. The highest price was $2383per ton, while the lowest was $2303 per ton. The final close was $2,375 per ton, up $42 per ton from the previous day’s close, an increase of 1.8%.


Last night, SHFE zinc 1811 contract opened higher at 21080 yuan/ton, and then rose sharply to the highest price of 21235 yuan/ton. The lowest price was 20970 yuan/ton, and the final closing price was 21100 yuan/ton, up 380yuan/ton from the settlement price in the last trading day, an increase of 1.83%. The transaction volume amounted to 352302 lots, with positioning of 201554 lots. It went longer of 2908 lots.


Zinc opened higher in the night trading session and continued yesterday's strong uptrend, with a large amount of money into the Shanghai zinc contract. Zinc price may run with strength.


Edited by SHMET