Zinc – bad weather in north China, with downstream galvanization stopping production

Date 3/14/2018 4:58:31 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 $3.5B, while the SHFE Spot/LME 3M arb also retreated to around 7.64, the spot import loss to RMB636/mt and expanding loss slightly in forward market, around RMB664/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB357/mt in spot import market, but it may lose RMB409/mt in forward import.

LME zinc c-3m basis is closing at $3.5C. Due to the bad weather in north China, downstream galvanization enterprises fail to come into operation, and zinc ore in domestic market continues to be tight. There is no recovery in spot market transactions. Zinc premium market enquiries are light, with the transactions being general. 

Edited by SHMET