A 30,075-tonne delivery of zinc into LME-approved warehouses in Antwerp yesterday rattled price sentiment for the metal. The LME’s three-month zinc price closed down by 2.5% or $77 per tonne at $3,135 per tonne on Wednesday, with this weakness filtering through to prices on the SHFE.
The June zinc contract price on the SHFE traded at 23,710 yuan ($3,751) per tonne as of 10.14 am Shanghai time, down by 1.9% or 455 yuan per tonne from Wednesday’s close.
Positive backdrops continue to support a potential uptrend for zinc however, with Metal Bulletin’s Andy Farida suggesting it would be down to a slowly improving technical configuration and macroeconomic backdrop.
“We feel that the highly anticipated Chinese apparent demand after the Lunar New Year holiday could materialize in the second quarter and that may support the zinc price to rebound further,” Farida added.
Meanwhile, aluminium dipped on the back of further easing in Rusal sanction-related concerns.
The June aluminium contract price on the SHFE slid by 0.2% or 35 yuan per tonne to 14,370 yuan per tonne as of 10.14am Shanghai time.
“The volatility that has typified the [aluminium] market in recent weeks has abated. This has been helped by Monday’s decision from the US to ease sanctions on Rusal and news that Glencore has restarted aluminium purchases from the Russian company,” ANZ Research noted on Thursday.
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