SHANGHAI, Mar. 24 (SMM) – The most active SHFE 1406 zinc contract prices started lower at RMB 14,720/mt in Thursday’s night session, and fell back after reaching a high to the 5-day moving average. The metal closed down RMB 10/mt, or 0.07%, at RMB 14,725/mt. During the trading session, trading volumes fell sharply 31,802 lots to 19,972 lots, while positions gained 2,722 lots to 76,494 lots. SHFE 1406 zinc contract prices started at RMB 14,735/mt on Friday, and then advanced to an intraday high of RMB 14,815/mt, boosted by stabilizing LME zinc prices and a rally in the Shanghai Composite Index. The contract prices finished up RMB 50/mt, or 0.34% at RMB 14,785/mt on Friday. Trading volumes shed 294 lots to 23,738 lots, and positions shrunk 312 lots to 76,182 lots.
In the Shanghai physical zinc market, traded prices on Friday were RMB 14,610-14,650/mt for #0 zinc, a discount of RMB 110-150/mt for the most active SHFE 1406 zinc contract prices, and RMB 14,610/mt for #1 zinc. Spot zinc prices inched a touch lower after SHFE 1406 zinc contract prices went down after starting at RMB 14,735/mt. Zinc smelters were disinclined to move goods, and traders also had low interest in entering the market against low zinc prices. Parts of downstream producers built stocks in small scale before the weekend, with trading volumes barely budging from Thursday’s level. Mainstream traded prices were RMB 14,640-14,650/mt for Shuangyan branded #0 zinc, RMB 14,630/mt for Yuguang branded #0 zinc, RMB 14,620/mt for Jiulong and Qinxin branded #0 zinc, and RMB 14,610-14,620/mt for Feilong branded #0 zinc on Friday.