SMM Zinc Market Daily Review (2015-5-6)

SHANGHAI, May 7 (SMM) – SHFE 1507 zinc contract prices opened at RMB 17,195/mt Tuesday evening, then soared to RMB 17,400/mt, and closed at RMB 17,405/mt, up RMB 295/mt or 1.72%. SHFE 1507 zinc contract prices opened at RMB 17,395/mt on Wednesday, then rolled back some early gains, but rose slightly in the afternoon, and closed at RMB 17,370/mt, up RMB 260/mt or 1.52%. Trading volumes soared 131,514 to 265,506 lots, and total positions increased 18,324 to 180,216. SHFE 1507 zinc contract prices are expected to rise further this evening.

#0 zinc prices were between RMB 17,180-17,240/mt, RMB 150-130/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 17,130-17,150/mt. SHFE 1507 zinc contract prices fluctuated around RMB 17,360/mt during 9:00-10:15 am, with spot discounts widening to RMB 20/mt, and traded prices between RMB 17,210-17,240/mt. After 10:30 am, SHFE 1507 zinc contract prices fell back to RMB 17,330/mt, with trading muted. Smelters sold actively on high zinc prices, while traders held back goods due to the lack of arbitrage opportunity, leaving spot discounts largely unchanged. Downstream buying interest was weak. Shuangyan #0 zinc prices were RMB 17,200-17,240/mt, RMB 130/mt below SHFE 1507 zinc contract prices. Yuguang and Huize #0 zinc prices were RMB 17,190-17,230/mt, RMB 140-130/mt below SHFE 1507 zinc contract prices. Qilin, Qinxin and Jiulong #0 zinc prices were RMB 17,180-17,220/mt, with spot discounts of RMB 150-140/mt against SHFE 1507 zinc contract prices. Baohui #0 zinc prices were RMB 17,160-17,170/mt, with spot discounts of RMB 190-170/mt against SHFE 1507 zinc contract prices. Namibia’s #0 zinc prices were RMB 17,130-17,140/mt, with spot discounts of RMB 200/mt against SHFE 1507 zinc contract prices. SHFE 1507 zinc contract prices rose RMB 20-30/mt in the afternoon, with spot discounts of Shuangyan zinc expanding RMB 20/mt.