July 19, 2018 / 2:14 AM / 4 months ago

METALS-Shanghai zinc jumps as much as 6 pct as supply tightens

    BEIJING, July 19 (Reuters) - Shanghai zinc soared as much as
6 percent to a one-week high on Thursday after data showed a
year-on-year drop in Chinese production and the London Metal
Exchange (LME) zinc price posted its biggest daily jump in
almost a year. 
    The metal, used to galvanise steel, had fallen by around 23
percent in London in June and July amid fears of oversupply
before short-covering kicked in on expectations that the
sell-off was overdone.    
        
    FUNDAMENTALS
    * SHANGHAI ZINC: The most-traded September zinc contract on
the Shanghai Futures Exchange hit the daily upside
limit of 6 percent in early trade, touching its highest since
July 10, and was up 4.9 percent at 21,405 yuan ($3,183.33) at
0157 GMT. 
    * LME ZINC: Three-month zinc on the LME rose as much
as 2.1 percent to $2,655 a tonne, extending a 3.5 percent gain
on Wednesday, its biggest daily jump since last August, before
easing back to $2,608.
    * CHINA: China's June zinc output fell 5 percent
year-on-year to 475,000 tonnes, the National Bureau of
Statistics said on Wednesday. 
    * TECHNICALS: Indicating near-term supply tightness in zinc,
LME cash zinc traded at a premium of $31 a tonne to the
three-month price CMZN0-3, up from an $8.50 premium on July
12.    
    * OTHER METALS: All other base metals were trading higher
with the exception of London nickel, which edged down
0.3 percent. Copper added 0.9 percent in Shanghai and 0.4
percent in London, but zinc's sister metal lead was the next
best performer, jumping 1.7 percent in Shanghai. 
    * COPPER: Three senior executives at Jiangxi Copper Co
, one of China's biggest copper producers,
have left their roles, the company said in a stock exchange
filing on Wednesday, in a major managerial shake-up at the
state-run firm. {nH9N1UC00Q]
    * ALCOA: Aluminium producer Alcoa Corp lowered its
forecast for adjusted earnings before interest, tax,
depreciation and amortization (EBITDA) for 2018 on Wednesday,
citing U.S. tariffs on imported aluminium and rising energy
costs.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    *  Asian shares made early gains on Thursday as upbeat Wall
Street earnings supported global investor sentiment, although
trade war jitters pushed China's offshore yuan to a fresh
one-year low.    
        
    
    PRICES    
 BASE METALS PRICES                        0156 GMT
 Three month LME copper                        6177
 Most active ShFE copper                      48900
 Three month LME aluminium                     2041
 Most active ShFE aluminium                   14090
 Three month LME zinc                        2612.5
 Most active ShFE zinc                        21395
 Three month LME lead                          2172
 Most active ShFE lead                        19100
 Three month LME nickel                       13575
 Most active ShFE nickel                     109560
 Three month LME tin                          19560
 Most active ShFE tin                        145050
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     360.64
 LME/SHFE ALUMINIUM           LMESHFALc3     #N/A
 LME/SHFE ZINC                LMESHFZNc3     #N/A
 LME/SHFE LEAD                LMESHFPBc3     308.03
 LME/SHFE NICKEL              LMESHFNIc3    1315.16
 ($1 = 6.7241 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; editing by Richard Pullin)
  
 
 
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