Zinc – Less import loss

Date 3/12/2018 4:13:35 PM Source: SHMET

Zinc Premiums in Shanghai bonded and CIF shanghai stood at $140-$150/mt, with no change. Today LME C-3m valued at $0.75C, while the SHFE Spot/LME 3M arb flattened out around 7.66, the spot import loss to RMB588/mt and expanding loss slightly in forward market, around RMB718/mt lost. Custom duty exempt brands, Australian and Korean, still generate a loss of RMB68/mt in spot import market, but it may lose RMB464/mt in forward import.

LME zinc c-3m basis is closing at 0.75. Raw material market of zinc remains in tight balance, which was cushioned by the examination of smelters in March. Import P&L of zinc was decreased till RMB200-300/mt thanks to the narrowed 1me basis and the plunge of domestic zinc price. There is no improvement of transactions in spot market. Market enquiries for zinc premium are light with overall transaction being general.


Edited by SHMET