Friday, October 10, 2014

Will Zinc Price Rally in October?

Will Zinc Price Rally in October?
Zinc price in China’s domestic market is expected to trend higher in October, an analyst from Shanghai CIFCO Futures predicts in a most recent SMM’s interview. 
Orders at Chinese galvanizers and zinc oxide producers usually grow in Q4, and this will boost demand for zinc ingot, the analyst told SMM. 
“Physical supply is tight now, with spot premiums in east China’s zinc market as high as 200 yuan per tonne”, he said.  
Concern over supply disruptions of zinc ore will continue to lure investors into zinc market, he added. 

China’s zinc exports reached a –year high in August, and most exports went to LME-registered warehouses, Shanghai Metals Market learns.
China exported 21,200 tonnes of refined zinc in August, up 28-fold YoY, bringing net imports only 37,000 tonnes, according to China Customs.
Growing pressures in bonded-zone inventories, Qingdao’s financing fraud, high storage charges and cash flow problems all promoted export activities since June, especially in bonded zones, SMM understands.

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