SMM Zinc Market Daily Review (2014-7-18)

SHANGHAI, Jul. 21 (SMM) – SHFE 1409 zinc contract prices opened at RMB 16,685/mt last Thursday evening, then touched RMB 16,715/mt, but later fluctuated between RMB 16,650-16,700/mt and closing at RMB 16,685/mt, up RMB 75/mt or 0.45%. SHFE 1409 zinc contract prices opened at RMB 16,685/mt on Friday, dipping to RMB 16,600/mt in the morning after touching RMB 16,720/mt, but rallying to RMB 16,630-16,680/mt due to the entry of bargain hunters. SHFE 1409 zinc contract prices fell below RMB 16,600/mt as LME zinc prices inched down and closed at RMB 16,575/mt, down RMB 35/mt or 0.21%. Trading volumes increased by 28,594 lots, to 257,486 lots, and total positions of SHFE 1409 zinc contracts decreased by 9,754 lots to 240,876 lots.

#0 zinc prices were between RMB 16,580-16,630/mt, with spot discounts of RMB 70-40/mt against SHFE 1409 zinc contract prices. #1 zinc prices were between RMB 16,580-16,600/mt. SHFE 1409 zinc contract prices dropped in the morning, with #0 zinc prices between RMB 15,560-15,600/mt. SHFE 1409 zinc contract prices edged up to RMB 16,660/mt, and spot prices remained firm, with spot discounts around RMB 50/mt. some cargo holders held back goods due to supply tightness, and arbitrage traders were uninterested in operations due to narrowing spot discounts. Downstream buyers replenished tocks modestly last Friday, but overall transactions were muted. Shuangyan branded #0 zinc prices were RMB 16,610-16,630/mt, and Yuguang, Qilin and Hongda brand #0 zinc prices were between RMB 16,580-16,620/mt. Prices for imported zinc were between RMB 15,580-15,590/mt. SHFE zinc prices fell back to RMB 16,600/mt in the afternoon, with spot discounts turning to premiums of RMB 10/mt.