China State Reserves Bureau buys 59,000 tons of zinc - reports

China's State Reserves Bureau agreed to buy about 59,000 tons of zinc yesterday from seven domestic producers, way below market expecation of 100,000 tons, the official China Securities Journal and Shanghai Securities News reported.

The reports cited sources as saying that the purchase price was set at 11,800 yuan per ton, about 4 pct higher than spot prices but below market expectations of at least 12,000 yuan per ton.

Zhuzhou Smelter Group Co Ltd, Shenzhen Zhongjin Lingnan Nonfemet Co Ltd (SZA 000060), Baiyin Nonferrous Metal (Group) Corp and Huludao Zinc Industry Co Ltd (SZA 000751) won orders of 15,000 tons, 13,000 tons, 10,000 tons and 6,000 tons respectively.

Meanwhile, the remaining 15,000 tons were shared by Henan Yuguang Gold & Lead Co Ltd (SHA 600531), Yunnan Chihong Zinc & Germanium Co Ltd (SHA 600497) and Shaanxi Hanzhong Bayi Zinc, the reports said.

The report said that the bureau bought the zinc via an auction process with transportation fees to bureau warehouses to be paid by thecompanies.

Last month, the reserves bureau completed a purchase of 290,000 tons of aluminium and 30 tons of indium, the report added.

(1 usd = 6.85 yuan)

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