SHANGHAI, Mar. 21 (SMM) – SHFE 1406 zinc contract followed LME zinc down to RMB 14,620/mt after opening lower at RMB 14,705/mt on Wednesday night. However, prices bounced back to a session high of RMB 14,890/mt later in the day due to investors closing short positions. The most active contract ended the night session up RMB 110/mt or 0.75% at RMB 14,860/mt. On Thursday, June zinc on the SHFE opened at RMB 14,860/mt before following LME zinc down to RMB 14,780/mt. The contract fluctuated between RMB 14,780-14,810/mt for most of the day, closing RMB 30/mt or 0.2% higher at RMB 14,780/mt. Trading volumes added 2,654 lots to 24,032 lots, but positions were down 1,712 lots to 73,772 lots.
In Shanghai’s physical zinc market, #0 zinc largely traded between RMB 14,640-14,670/mt on Thursday, RMB 120-150/mt below SHFE 1406 zinc contract prices. #1 zinc prices were between RMB 14,620-14,630/mt. Smelters held back goods at low prices. Some downstream producers became more interest in buying now that zinc prices have stabilized, improving trading slightly. Prices were RMB 14,660-14,670/mt for Shuangyan brand #0 zinc, RMB 14,640-14,650/mt for Qinxin, Jiulong and Feilong brand #0 zinc, and RMB 14,640/mt for #0 Tongguan brand zinc. In the afternoon, Shuangyan brand #0 zinc hovered near RMB 14,660/mt.