October 9, 2017 / 2:17 AM / 2 years ago

METALS-Shanghai zinc hits 9-1/2 year high on supply stress

    MELBOURNE, Oct 9 (Reuters) - Shanghai zinc surged 4 percent
to reach its highest in nearly a decade on Monday as China
markets returned from a week of holidays to follow London prices
higher on supply concerns.
    
    FUNDAMENTALS
    * Shanghai Futures Exchange zinc rallied by 4 percent to hit
its most expensive since March 2008 at 26,935 yuan ($4,048) a
tonne. 
    * Concerns about dwindling supply have lit a fire under
prices as the closure of several giant mines last year has
crimped production of refined metal. In China, Shfe zinc stocks
are the lowest since early 2009, just under 65,000 tonnes.
ZN-STX-SGH
    * On the London Metal Exchange, zinc prices climbed by 1.1
percent to $3,271 a tonne. LME prices, which have climbed by 27
percent so this year, last week hit $3,308.75  which was the
loftiest since August 2007.  
    * LME zinc cash to three month spreads are also showing the
most stress in a decade, with LME cash prices more than $65
above the benchmark contract several times in the past month.
CMZN0-3
    * Elsewhere, LME copper edged up by 0.1 percent to
$6,675 a tonne, while SHFE copper rose by 2.1 percent
to 52,350 yuan ($7,868) a tonne.
    * Potentially dampening metals prices for the session,
activity in China's services sector grew at its slowest pace in
21 months in September as the pace of new business cooled, a
private survey showed.
    * Columbus Day in the U.S. and a public holiday in Japan
thinned out trading volumes even as Chinese markets reopened. 
    * Meanwhile, metals found support as the dollar edged back
from more than two-month highs as immediate concerns about North
Korea's long-range missile capabilities receded.
    * Still, Federal Reserve policymakers on Friday signalled
they continue to see gradual U.S. interest-rate hikes ahead,
signalling dollar-linked headwinds to metals.
    * German industrial orders bounced back in August, rising
more than expected on strong foreign demand, data showed on
Friday, suggesting that factories will contribute to overall
growth in Europe's largest economy in coming months.

    * Hedge funds and money managers reduced their net long
positions in COMEX copper futures and options for the fourth
straight week, in the week to Oct. 3, U.S. Commodity Futures
Trading Commission data showed on Friday. 
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Australian shares and U.S. stock futures inched higher on
Monday as the flow of economic news remained generally
supportive.    
        
     DATA AHEAD (GMT) 
     0145  China Caixin services PMI Sep 
     0600  Germany Industrial output Aug 
     0830  Euro zone Sentix index Oct 
     1400  U.S. Employment trends Sep     
 BASE METALS PRICES              0151 GMT          
 Three month LME copper                        6676
 Most active ShFE                             52310
 copper                                    
 Three month LME                               2153
 aluminium                                 
 Most active ShFE                             16550
 aluminium                                 
 Three month LME zinc                          3266
 Most active ShFE zinc                        26790
 Three month LME lead                          2534
 Most active ShFE lead                        21310
 Three month LME nickel                       10615
 Most active ShFE                             85890
 nickel                                    
 Three month LME tin                          20740
 Most active ShFE tin                        148240
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER          LMESHFCUc3         384.95
 LME/SHFE ALUMINIUM       LMESHFALc3         -53.17
 LME/SHFE ZINC            LMESHFZNc3         640.46
 LME/SHFE LEAD            LMESHFPBc3          204.9
 LME/SHFE NICKEL          LMESHFNIc3        2387.19
 
($1 = 6.6533 Chinese yuan renminbi)

    
 (Reporting by Melanie Burton; Editing by Kenneth Maxwell)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below