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Zinc – import TC/RCs slightly increased in February

Date 2/12/2018 4:42:11 PM Source: SHMET

Zinc Premiums in Shanghai bonded, and CIF shanghai saw no change, at $155-$165/mt and $160-$170/mt respectively. Today LME C-3m valued at 27B, while the SHFE Spot/LME 3M arb also retreated to around 7.57, the spot import loss to RMB752/mt and expanding loss slightly in forward market, around RMB860/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB651/mt in spot import market, but it may lose RMB558/mt in forward import.

LME zinc c-3m basis is closing at $27B, with the squeeze being not slightly relieved. The output of domestic zinc ore decreased, and the import TC/RCs was slightly increased in February, with the domestic contango being expanded. There is no improvement of transaction in the spot market. Zinc premium market enquiries are light, with the transactions being general. 

Edited by SHMET