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SHFE lead fall after rise and zinc price retrieved

Date 10/11/2018 4:03:56 PM Source: SHMET

SHANGHAI, Oct 11 (SHMET)  –  Lead: Shanghai spot lead mainstream offer is at 18,230-18,530 yuan/mt, down 130 yuan / mt from the previous trading day, which has a premium 50 – 300 yuan / mt compared with 1811 contract. Shanghai Jinsha lead quoted with a premium of 350 - 400 yuan/mt compared with 1810 contract, with a few transactions. Nanfang lead quoted with a premium of 300 yuan/mt compared with 1811 contract. Haqian lead quoted with a premium of 50-100 yuan/mt. There are few lead sources in the Shanghai market, and the trade transaction is relatively weak: first, because of the deviation of domestic and foreign price trends, there are more wait-and-see sentiments; second, some downstream consumption of the factory's inventory; third, more downstream choose the direct procurement from the refinery, and there is a relatively less procurement from traders.

Zinc: Shanghai spot zinc quotation of 0# zinc is at 23,520-23,620 yuan/mt, down 260 yuan/mt from the previous trading day, which is 200c to 100c/mt compared with SHFE zinc 1810 contract. The quotation of 1# zinc is at 23,460-23,560 yuan/mt, down RMB260 yuan/mt from the previous trading day, which is 260C-160C yuan compared with SHFE zinc 1810 contract. In terms of imported zinc brand, SMC zinc ingot quoted with a discount of around 350 yuan/mt and Spanish zinc ingot quoted with a discount of 450 yuan/mt compared with 1810 contract. Premium and discount continues to decline compared with yesterday, but the downstream bearish sentiment continues. The spread between domestic and import brands expanded, with the market performance being flat. 


SHMET comments:

On Oct. 11, basic metals price generally decline, which is mainly caused by the market bearish atmosphere. On the fundamentals of domestic lead, SHFE lead fell after rise, with three month contract supporting 40 day moving average.

 

SHFE zinc fell in the first week after the holiday. Import window opened again, but foreign trade market is light. Spot market imported zinc ingot premium and discount has a large increase. It is expected that zinc price may fluctuate. 

 

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Edited by SHMET