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Zinc - SHMET Import Market Briefing

Date 11/14/2017 5:41:38 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 $29B high while the SHFE Spot/LME 3M arb also retreated to around 8.03, the spot import loss to RMB852/mt and expanding loss slightly in forward market, around RMB1047/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB548/mt in spot import market, but may lose RMB743/mt in forward import.

LME zinc stocks continue to destock in Europe and North America, which is enlarged recently with backwardation. This week is the third week of November, so the LME has a possibility of corners and squeezes for the November date. In terms of consumption, the reduction of terminal orders, high raw material costs, poor galvanizing profits and the accumulated stocks of finished products will all upset zinc consumption in the medium term. Today, customers are mainly doing inquiries in the market and the transactions are general.

 

Edited by SHMET