SMM Zinc Market Daily Review (2014-4-28)

SHANGHAI, Apr. 29 (SMM) – SHFE 1407 zinc contract prices opened at RMB 15,220/mt last Friday evening, and edged down below RMB 15,200/mt, dragged down by LME zinc prices, and closed at RMB 15,175/mt, down RMB 10/mt or 0.07%. Trading volumes decreased by 11,670 lots to 7,662 lots, and total positions increased by 498 lots to 89,690 lots.

SHFE 1407 zinc contract prices opened at RMB 15,175/mt on Monday, and were weaker than LME zinc prices. As a large number of longs left the market after profit-taking, SHFE 1407 zinc contract prices inched down to RMB 15,110/mt, and closing at RMB 15,135/mt, down RMB 50/mt or 0.33%. Trading volumes increased by 2,976 lots, to 24,024 lots, and total positions decreased by 3,122 lots, to 86,568 lots.

#0 zinc prices were between RMB 15,140-15,170/mt, with spot premiums between RMB 0-30/mt against SHFE 1407 zinc contract prices. #1 zinc prices were between RMB 15,110-15,120/mt. SHFE 1407 zinc contract prices plunged RMB 40/mt after opening to RMB 15140/mt, and spot prices stood firm, with spot premiums expanding RMB 10/mt. smelters and other cargo holders increased supply, causing supply tightness to ease. But traders lacked interest in operations due to month-end cash flow tightness and upcoming May Day holiday, and downstream buyers purchased modestly, with transactions muted. Shuangyan branded #0 zinc prices were between RMB 15,160-15,170/mt, with RMB 15,140-15,160/mt for Qinxin, Jiulong and Yuguang branded #0 zinc. AZ branded #0 zinc prices were around RMB 15,130/mt.