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Zinc - SHMET Import Market Briefing

Date 12/6/2017 4:32:16 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 $18B high while the SHFE Spot/LME 3M arb also retreated to around 8.03, the spot import loss to RMB748/mt and expanding loss slightly in forward market, around RMB1166/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB456/mt in spot import market, but may lose RMB873/mt in forward import.  

In the short term, the fundamentals will continue to be strong in supply and weak in demand and the zinc price will continue to maintain a weak oscillation pattern. It is likely to be the most intense period of zinc concentrate in the first quarter of next year, and at that time the release of refined zinc smelting capacity will be under examination. There are many customers’ inquiries in the market, with transactions being general.

Edited by SHMET