Zinc- zinc concentrate TC/RCs trending lower, with consumption seeing no improvement

Date 1/11/2018 5:58:16 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 22.25B, while the SHFE Spot/LME 3M arb also retreated to around 7.72, the spot import loss to RMB1309/mt and expanding loss slightly in forward market, around RMB1206/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB1001/mt in spot import market, but may lose RMB898/mt in forward import.

LME zinc c-3m basis is closing at $22.25. LME stocks fell quickly, beware of that there will be a squeeze again. The current zinc price is at a historical high level and zinc concentrate TC/RCs still has a downward trend, indicating the tightness of zinc concentrate is increased. However, the downstream consumption of zinc ingot has been not improved and the inventory accumulation has been slow. Zinc premium market enquiries are light, with the transactions being general.

       Edited by SHMET