SHANGHAI, Apr. 10 (SMM) – The most active SHFE 1406 zinc contract price rose to a high of RMB 14,950/mt after starting at RMB 14,910/mt, and closed up RMB 60/mt, or 0.4%, at RMB 14,950/mt during Tuesday’s night session.
On Wednesday, SHFE 1406 zinc contract prices opened at RMB 14,945/mt, and hovered most of the day between RMB 14,930-14,945/mt. The metal fell slightly at the tail of the trading to a new intraday low of RMB 14,915/mt, and finished up RMB 40/mt, or 0.27%, at RMB 14,930/mt. Traded volumes lost 1,794 lots to 14,154 lots, while positions shed 2,334 lots to 65,206 lots.
In the Shanghai physical market, #0 zinc ingot traded Wednesday mostly between RMB 14,810-14,830/mt, a discount of RMB 110-130/mt over the most active SHFE 1406 zinc contract price. Traded prices for #1 zinc ingot were around RMB 14,780/mt. Zinc smelters were reluctant to move goods, while some of them planned maintenance. Downstream producers, however, ramped up purchases due to the seasonally brisk consumption period and eased liquidity. Some zinc brands were in short supply, helping support physical prices, and price gap between various brands narrowed. Physical zinc prices followed the most active SHFE zinc contract price up on Wednesday, with discounts essentially unchanged from Tuesday. Downstream purchases were sluggish due to high zinc prices and following intensive restocking activity on Tuesday, with worse transactions. Traded prices were RMB 14,820-14,830/mt for Shuangyan branded #0 zinc and RMB 14,810-14,820/mt for Yuguang, Feilong, and Jiulong branded #0 zinc.