Metals: Zinc prices touch 5-week high on South Korean smelter output cut

YoungPoong

07/03/2024 07:22

(Updates prices, adds quotes)
       March 7 (Reuters) - Zinc futures rose to their highest
level in five weeks on Thursday, as a reduction in output at a
smelter in South Korea threatened supply, but tepid demand in
major consumer China capped gains.
    The most traded April zinc contract on the Shanghai Futures
Exchange  SZNcv1  climbed as much as 1.6% to 21,080 yuan
($2,928.84), the highest since Feb. 1. LME zinc  CMZN3  also hit
a five-week high of $2,522.50 a ton.
    The zinc price rally was fuelled by a 20% production cut at
Young Poong Corp's  000670.KS  Seokpo smelter in South Korea,
analysts and a trader said.
    Another trader also attributed the rally to tight zinc
concentrate supply, but added that Chinese demand had so far
remained flat versus last year.
    "Zinc consumption from downstream galvanizing manufacturers
in northern China has recently been subject to environmental
protection and production restrictions, and demand has been
mediocre," said Huatai Futures in a report.
    Combined zinc inventories in SHFE and LME warehouses were
hovering near the highest since May 2021, exchange data showed.
    SHFE copper closed up 0.7% at 69,500 yuan, having hit 69,580
yuan earlier in the session, its highest since Feb. 1. LME
copper  CMCU3  hit its highest since Feb. 23 at $8,593.50.    
    Prices were supported by the reassurance that the United
States would likely cut rates in the coming months. 
    Yangshan copper's premium  SMM-CUYP-CN  rose to $60 a ton on
Wednesday, the highest since Jan. 19, indicating improving
demand for copper imports into China.
    Unwrought copper imports into China rose 2.6% in the first
two months of 2024.    
    SHFE aluminium  SAFcv1  edged up 0.5% to 19,130 yuan a ton,
nickel  SNIcv1  increased 0.4% to 136,120 yuan, lead  SPBcv1 
was up 0.2% at 16,040 yuan and tin  SSNcv1  rose 1.2% to 221,330
yuan.
    LME aluminium  CMAL3  rose 0.4% to $2,243.50 a ton, nickel
 CMNI3  climbed 1% to $17,890, lead  CMPB3  advanced 1.1% to
$2,088, and tin  CMSN3  advanced 0.5% to $27,320.
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 TOP/MTL  or  MET/L      
    ($1 = 7.1974 yuan)

 (Reporting by Mai Nguyen in Hanoi  Editing by Eileen Soreng and
Mark Potter)
 ((mai.nguyen@thomsonreuters.com; Reuters Messaging:
mai.nguyen.thomsonreuters.com@reuters.net))
 
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