SMM Zinc Market Daily Review (2014-4-24)

SHANGHAI, Apr. 25 (SMM) – SHFE 1407 zinc contract prices opened at RMB 15,125/mt on Wednesday evening. As some longs left the market with profit-taking, SHFE 1407 zinc contract prices hovered around opening prices and closed at RMB 15,115/mt, down RMB 50/mt or 0.33%. Trading volumes increased by 1,406 lots to 11,800 lots, and total positions increased by 606 lots to 80,162 lots. SHFE 1407 zinc contract prices opened at RMB 15,125/mt on Thursday, gaining ground after hovering around the opening price, supported by rising LME zinc prices. At the end of trading, SHFE 1407 zinc contract prices touched an intraday high of RMB 15,200/mt, and closing at RMB 15,195/mt, up RMB 30/mt or 0.2%. Trading volumes increased by 1,194 lots, to 26,522 lots, and total positions increased by 7,084 lots, to 87,246 lots.

#0 zinc prices were between RMB 15,140-15,170/mt, with spot premiums of RMB 0-30/mt against SHFE 1407 zinc contract prices. #1 zinc prices were between RMB 15,120-15,130/mt. SHFE 1407 zinc contract prices hovered around RMB 15,130/mt during the first trading session on Thursday, with spot premiums expanding to RMB 30/mt. Shuangyan branded #0 zinc prices were around RMB 15,160/mt, with RMB 15,150/mt for Yuguang branded #0 zinc and RMB 15,140-15,150/mt for other regular brands. During the second trading session, SHFE zinc prices edged up to RMB 15160/mt, and spot transactions made at the low end of the price range decreased. But high spot premiums stimulated buying interest of downstream buyers and traders. Spot price gains were limited. Shuangyan branded #0 zinc was once quoted between RMB 15,170-15,180/mt, but mainstream prices were around RMB 15,160/mt. Prices for Jiulong, Qinxin and Yuguang were around RMB 15,150/mt. cargo holders were more actively moving goods, with some smelters and traders also selling goods. But downstream buying interest was low, leaving transactions muted. Prices for imported AZ branded zinc were between RMB 15,140-15,150/mt.