Shanghai zinc climbs 2-month peak as supply squeezes, China demands improve



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Shanghai zinc climbs 2-month peak as supply squeezes, China demands improve

On Wednesday, the 29th of April 2020, zinc futures’ prices had jumped to nearly two-month highs following a notable improvement in China demands, while pandemic-driven supply disruptions added to further supports to zinc futures in the Shanghai metal exchange.

On top of that, the most traded zinc futures’ prices scheduled to be expired on June had surged as much as 2.1 per cent to $2.320.01 per ton in Shanghai Futures Exchange, marking up its highest level since February 28th, however, the future had wrapped up the day 1.8 per cent higher to $2,312.65 a ton, while the benchmark three-month zinc had been trading 0.9 per cent higher to $1,947.50 per ton in the London Metal Exchange.

Meanwhile, referring to a bizarre equation of demand appetite while Chinese factory activity would likely to regain momentum this month, but many parts of the world seemed to be well poised to remain locked down until at least end-May, an analyst at CRU Group, Dina Yu said on Wednesday’s (April 29th) market wind down, “Zinc treatment charges (TCs) declined very fast in recent weeks due to the shortage in supply of concentrate and we expect some zinc smelters to cut production in Q2-Q3.

Demand is recovering in March and April (in China), but the demand for export is weakening slightly”.