SMM Zinc Market Daily Review (2014-7-9)

SHANGHAI, Jul. 10 (SMM) – SHFE 1409 zinc contract prices opened at RMB 16,470/mt on Tuesday evening, then fell to RMB 16,325-16,375/mt, and closing at RMB 16,345/mt, up RMB 65/mt or 0.4%. SHFE 1409 zinc contract prices opened at RMB 16,340/mt on Wednesday, and rose to RMB 16,380/mt before falling to RMB 16,215/mt. But due to strong long momentum and rising LME zinc prices, SHFE 1409 zinc contract prices touched an intraday high of RMB 16,410/mt, and closing at RMB 16,385/mt, up RMB 105/mt or 0.64%. Trading volumes decreased by 98,010 lots, to 223,830 lots, and total positions of SHFE 1409 zinc contracts decreased by 9,508 lots to 243,300 lots.

#0 zinc prices were between RMB 16,100-16,170/mt, with spot discounts of RMB 120-150/mt against SHFE 1409 zinc contract prices. #1 zinc prices were between RMB 16,050-16,070/mt. SHFE 1409 zinc contract prices fell to RMB 16,280-16,300/mt in the morning, but spot discounts remained between RMB 130-150/mt, and mainstream #0 zinc prices between RMB 16,140-16,160/mt, with arbitrage traders unwilling to sell. As SHFE 1409 zinc contract prices fell to RMB 16,215-16,255/mt, spot discounts narrowed to RMB 120-140/mt against SHFE 1409 zinc contract prices, with some lower-priced goods released, and mainstream #0 zinc prices between RMB 16,100-16,140/mt. During the second trading session, SHFE 1409 zinc contract prices climbed to RMB 16,315/mt, with spot discounts of #0 zinc between RMB 130-150/mt. Traders were active purchasing, but downstream buying interest remained weak. Shuangyan branded #0 zinc prices were between RMB 16,140-16,160/mt before 10:30 AM, and RMB 16,100-16,130/mt for Yuguang, Jiulong and Qinxin branded #0 zinc. Shuangyan branded #0 zinc prices were between RMB 16,170-16,180/mt later the day, RMB 16,140-16,160/mt for Yuguang, Jiulong and Qinxin brand zinc, RMB 16,150-16,170/mt for Huize brand zinc, RMB 16,140/mt for AZ brand zinc and RMB 16,100/mt for other imported zinc. In the afternoon, SHFE zinc prices continued to rise, and spot zinc prices also increased, with spot discounts once expanding to RMB 200/mt. #0 zinc prices were between RMB 16,160-16,190/mt.