Chinese zinc scrap prices, similar to futures prices at Shanghai Futures Exchange (SHFE) and London Metal Exchange (LME), has disappointed sellers after Lunar New Year holidays.
Chinese zinc scrap prices declined by 3.3% after Chinese Lunar New Year holidays, while zinc futures prices at SHFE and LME declined 3.46% and 3.83% respectively.
The fall in zinc prices was mostly on account of weakness in copper and other base metals at the LME after factory-gate deflation deepened in China, the largest user of the metal.
According to Scrap Register Price Index, Chinese zinc scrap prices declined CNY 540 a metric ton during from February 17 to March 10. The prices dropped from CNY 16, 340 a metric ton to CNY 15,800 a metric ton.
“The Chinese zinc market will continue falling in the short run. Domestic zinc smelters, returning from the holiday, are increasing output, and the increase in market supply will compound to weigh on the market as demand buying has shown no signs of great recovery,” said an analyst at Baocheng Futures to Shanghai Metals Market.
(This article is researched and compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
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