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Zinc - SHMET Import Market Briefing

Date 12/7/2017 4:50:17 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 $14.5B high while the SHFE Spot/LME 3M arb also retreated to around 8.02, the spot import loss to RMB779/mt and expanding loss slightly in forward market, around RMB1181/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB486/mt in spot import market, but may lose RMB887/mt in forward import.  

Due to environmental protection and seasonal factors, the overall weak trend in domestic zinc consumption has not changed. However, as the supply of zinc concentrate has tightened, the production cutbacks caused by domestic zinc smelting overhaul from December to January next year will be increased, so the domestic zinc ingot inventory has maintained at low levels in the near term. There are many customers’ inquiries in the market, with transactions being general.

Edited by SHMET