SHANGHAI, Apr. 21 (SMM) – SHFE 1407 zinc contract prices opened at RMB 15,110/mt, and inched down due to falling LME zinc prices, and closing at RMB 15,075/mt, down RMB 15/mt or 0.1%. Trading volumes increased by 4,758 lots to 11,374 lots, and total positions increased by 2,432 lots to 61,550 lots.
With the lack of directions from the LME market, SHFE 1407 zinc contract prices dropped after opening as a large number of longs left the market, dipping to RMB 15,020/mt on Friday. SHFE 1407 zinc contract prices clawed back most losses, and climbed to RMB 15,065/mt, and closing at RMB 15,075/mt, down RMB 15/mt or 0.1%. Trading volumes decreased by 4,170 lots, to 18,126 lots, and total positions increased by 2,140 lots, to 63,690 lots.
#0 zinc prices were between RMB 15,000-15,020/mt, with spot discounts expanding to RMB 20-60/mt against SHFE 1407 zinc contract prices. #1 zinc prices were around RMB 14,980/mt. SHFE 1406 zinc contract prices opened at RMB 15,075/mt on Friday, and then fell to fluctuate around RMB 15,040/mt. Spot supply was tight since some smelters conducted maintenance and held back goods. SHFE zinc prices fell after opening, but continuously rising spot prices stimulated traders to sell goods. Nevertheless, they held back goods again due to tight supply. Spot prices edged up as SHFE zinc prices stabilized, with regular brand #0 zinc prices returning above RMB 15,000/mt. Falling zinc prices prompted some downstream buyers to replenish stocks, causing trading to improve. Shuangyan branded #0 zinc prices were between RMB 15,000-15,020/mt, with RMB 15,000/mt for Baohui, Qinxin, Yuguang, Jiulong and SMC branded #0 zinc.