METALS-Zinc at two-week high on falling stocks, higher demand...

METALS-Zinc at two-week high on falling stocks, higher demand
19/06/17 23:41

1. 
   Indigenous men secure a sheet of zinc in a window of Moravo School before the arrival of Storm Otto in Bluefields town, Nicaragua November 23, 2016.
   • LME/ShFE arb: http://tmsnrt.rs/2oQ5nm2
   (Adds official prices)
   Zinc prices touched a two-week high on Monday as expectations of higher demand from steelmakers rose and inventories of the metal on the London Metal Exchange hit nine-year lows.
   Benchmark zinc CMZN3 on the LME was bid up 0.9 percent at $2,550 a tonne after failing to trade in official rings. This was a high last seen on June 2.
   "After years of waiting for zinc to tighten, it seems we are starting to see tangible signs that it's happening," Caroline Bain, senior commodities economist at Capital Economics, said.
   She cited China's rising imports of refined zinc and falling zinc output in data.
   ZINC STOCKS: The market focus is on New Orleans warehouses' on-warrant stocks, which have dropped to 144,975 tonnes after a further 24,475 tonnes of cancellations or metal earmarked for delivery. MZNSTX-TOTAL On-warrant zinc stocks - metal available to the market - have fallen 54 percent this year to the lowest levels since July 2008.
   STEEL PRICES: Chinese iron ore futures edged up along with steel but investment bank Citi said the steelmaking raw material is still under pressure amid a persistent glut. [IRONORE/]
   CHINA: In April, China's refined zinc output fell to its lowest in more than two years due to mine closures. Imports increased 21 percent in April to 47,469 tonnes year-on-year.
   COPPER: Copper prices CMCU3 rose 0.8 percent to $5,710 per tonne in official LME rings, helped by news and data from China that indicated higher demand for the commodity used in construction and power.
   HOME PRICES: Home prices levelled off in China's biggest cities in May but continued to climb nationwide, indicating demand remains resilient despite government measures to keep the market from overheating.
   INVESTMENT: China's securities regulator said it will encourage wealth management firms to invest in commodity futures in a bid to promote its domestic derivatives industry and raise the amount of commodities in the nation's assets under management.
   FINANCING: China's central bank plans to step up support for "green" financing, including incentives to encourage banks to extend more loans for projects friendly to the environment, a deputy governor said on Friday.
   CFTC: Speculators increased their net long position in copper futures and options, latest data from the U.S. Commodity Futures Trading Commission showed.
   WARRANT HOLDINGS: Traders are watching large holdings of cash contracts and warrants of copper, aluminium and nickel. <0#LME-WHC>
   PRICES: Aluminium CMAL3 was bid up 0.4 percent at $1,875 per tonne after touching its lowest since May 11 on Friday. Nickel CMNI3 was bid 0.3 percent higher at $8,970 per tonne. Tin CMSN3 was bid up 0.1 percent at $19,675 while lead CMPB3 traded up 2 percent at $2,137, its highest in five weeks.
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