SMM Zinc Market Daily Review (2014-6-10)

SHANGHAI, Jun. 11 (SMM) – SHFE 1408 zinc contract prices opened higher at RMB 15,360/mt on Monday evening, then touched RMB 15,410/mt, a record high since February, and closing at RMB 15,375/mt. SHFE 1408 zinc contract prices opened at RMB 15,370/mt, then fluctuated between RMB 15,315-15,375/mt. In the afternoon, SHFE 1408 zinc contract prices rose to touch RMB 15,415/mt, and closing at RMB 15,395/mt, up RMB 135/mt or 0.88%. Trading volumes decreased by 4,090 lots, to 33,952 lots, and total positions increased by over 2,774 lots, to 90,938 lots.
 
#0 zinc prices were between RMB 15,280-15,300/mt, with spot discounts of RMB 40-60/mt against SHFE 1408 zinc contract prices. #1 zinc prices were between RMB 15,210-15,220/mt. SHFE zinc prices rose slightly to RMB 15350/mt, but spot prices lacked ability to rise, causing spot discounts to expand and traders to enter the market. Smelters increased supply due to rising zinc prices, but downstream buyers took a wait-and-see attitude. Imported zinc supply was sufficient, when combined with an advantage over domestic prices, transactions for domestic well-known branded zinc were affected. Overall transactions did not improve. Shuangyan branded #0 prices were around RMB 15,300/mt, and RMB 15,280-15,290/mt for Yuguang and Qinxin branded #0 zinc. Imported #0 zinc prices were between RMB 15,230-15,250/mt. SHFE 1408 zinc contract prices hit an intraday high in the afternoon, keeping market players out of the market, with #0 zinc prices between RMB 15,300-15,330/mt.