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Zinc – Downstream purchase demand is weaker, with transactions being not active

Date 4/13/2018 5:33:17 PM Source: SHMET

Zinc Premiums in Shanghai bonded warehouse quoted at $125-$135/mt and CIF shanghai stood at $135-$145/mt. Today LME C-3m valued at $7.5C, while the SHFE Spot/LME 3M arb also retreated to around 7.66, the spot import loss to RMB300/mt and expanding loss slightly in forward market, around RMB745/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB5/mt in spot import market, but it may lose RMB490/mt in forward import.

Zinc ingot import losses were slightly reduced, and downstream buyers were reluctant to import by customs clearance. At present, traders in the market are less willing to deliver cargoes at low prices, with the quotation of zinc ingot B/L and warrants insisting on around $40/ton. However, downstream purchase demand is also light, with the transactions being not active.

Edited by SHMET