Chinese zinc ingot prices hover at high levels
2014-07-14 10:37:38 [Print]
BEIJING (Asian Metal) 14 Jul 14 - After a sharp rise in early July, Chinese zinc ingot prices hovered at high levels last Friday. Most zinc smelters and traders were busy selling zinc ingots, and end users insisted on making on-demand procurement. Prices may continue to remain high in the near term.
A trader from Shanghai quoted Shuangyan brand SHG zinc ingot at RMB16,150/t (USD2,622/t) on the Chinese spot market last Friday, RMB20/t (USD3/t) higher than last Thursday and RMB100/t (USD16/t) lower than three-month zinc futures on the SHFE. Demand from end users is flat and consumers are prudent to purchase zinc ingot due to high prices, so they mainly sell the metal to other distributors.
“Trading is active on the futures market but weak on the spot market. Zinc ingot supply is limited as some zinc smelters reduce production,” the source noted. “I think zinc prices will continue to fluctuate at high levels supported by limited supply in the near term.”
A producer from Hunan reported that SHG zinc ingot prices continued to fluctuate around RMB16,100-16,150/t (USD2,614-2,622/t) on the spot market last Friday, and he thought the prices may firm at high levels due to financial speculations. “We’re always busy selling zinc ingot and hold no stock on hand. I think there may be limited room for zinc prices to increase further, but the prices will also not retreat encouraged by favorable economic data and improving fundamental,” said the source.
The zinc smelter is operating fully with the zinc ingot output of 7,000tpm now, and the output will continue to be steady in the second half of 2014.
A trader from Shanghai quoted Shuangyan brand SHG zinc ingot at RMB16,150/t (USD2,622/t) on the Chinese spot market last Friday, RMB20/t (USD3/t) higher than last Thursday and RMB100/t (USD16/t) lower than three-month zinc futures on the SHFE. Demand from end users is flat and consumers are prudent to purchase zinc ingot due to high prices, so they mainly sell the metal to other distributors.
“Trading is active on the futures market but weak on the spot market. Zinc ingot supply is limited as some zinc smelters reduce production,” the source noted. “I think zinc prices will continue to fluctuate at high levels supported by limited supply in the near term.”
A producer from Hunan reported that SHG zinc ingot prices continued to fluctuate around RMB16,100-16,150/t (USD2,614-2,622/t) on the spot market last Friday, and he thought the prices may firm at high levels due to financial speculations. “We’re always busy selling zinc ingot and hold no stock on hand. I think there may be limited room for zinc prices to increase further, but the prices will also not retreat encouraged by favorable economic data and improving fundamental,” said the source.
The zinc smelter is operating fully with the zinc ingot output of 7,000tpm now, and the output will continue to be steady in the second half of 2014.
Zinc Ingot 99.995%min In warehouse Shanghai
Unit:RMB/mt
China refined zinc producers' inventory statistics by province by month
Unit: mt
