July 18, 2018 / 2:28 AM / 5 months ago

METALS-Shanghai zinc prices pick up from 1-yr low as inventories drop

    BEIJING, July 18 (Reuters) - Shanghai zinc was on course for
its first rise in seven trading days on Wednesday, moving away
from the previous session's one-year low as it tracked Tuesday's
gains in London, where zinc inventories have fallen for six
straight days.
    The metal, used to galvanise steel, is still down 11.6
percent so far this month in Shanghai on concerns about
oversupply.
        
    FUNDAMENTALS
    * SHANGHAI ZINC: The most-traded September zinc contract
 on the Shanghai Futures Exchange was trading up 0.6
percent at 20,370 yuan ($3,039.98) a tonne at 0157 GMT, above
Tuesday's one-year low of 20,055 yuan a tonne. It has fallen in
10 of the previous 13 trading days. 
    * LME ZINC: Three-month zinc on the London Metal Exchange
 edged down 0.1 percent to $2,510.50 a tonne, after a
1.5-percent jump in the previous session.
    * GRAPHIC: Expectations for a rise in zinc concentrate
supplies in coming years have driven down the metal price in
London to one-year lows, but smelting capacity constraints
suggest the sell-off is premature. 
    * OTHER METALS: LME base metals were mostly trading higher,
with nickel adding 0.6 percent and copper rising 0.2
percent. However, tin slipped 0.1 percent. 
    * GUINEA: The West African nation of Guinea is in talks with
Rio Tinto and Chinalco to finalise a deal on
the Simandou iron ore project, its mining minister said on
Tuesday, adding he was confident an agreement would be reached.

    * CANADA: Nevsun Resources Ltd said on Tuesday that
rival Lundin Mining Corp's latest buyout proposal
undervalues the base metals miner and its assets. {nL4N1UD453]
    
    For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    *  Asian shares followed Wall Street higher on Wednesday as
a bullish outlook from the head of the U.S. central bank buoyed
the dollar, lifted Tokyo shares to a one-month top and sent gold
to a one-year trough.    
        
    PRICES    
 BASE METALS PRICES                        0157 GMT
 Three month LME copper                      6165.5
 Most active ShFE copper                      48640
 Three month LME aluminium                     2037
 Most active ShFE aluminium                   14035
 Three month LME zinc                        2510.5
 Most active ShFE zinc                        20370
 Three month LME lead                          2174
 Most active ShFE lead                        18765
 Three month LME nickel                       13570
 Most active ShFE nickel                     108840
 Three month LME tin                          19500
 Most active ShFE tin                        144390
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER             LMESHFCUc3      413.27
 LME/SHFE ALUMINIUM          LMESHFALc3    -1847.76
 LME/SHFE ZINC               LMESHFZNc3       267.5
 LME/SHFE LEAD               LMESHFPBc3      275.38
 LME/SHFE NICKEL             LMESHFNIc3     1140.72
    
($1 = 6.7007 Chinese yuan renminbi)

    
 (Reporting by Tom Daly
Editing by Joseph Radford)
  
 
 
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