SMM Zinc Market Daily Review (2014-10-9)

SHANGHAI, Oct. 10 (SMM) – SHFE 1412 zinc contract prices opened at RMB 16,900/mt on Wednesday evening, then dropped to as low as RMB 16,675/mt, but clawing back some losses and closing at RMB 16,720/mt, down RMB 110/mt or 0.65%. Trading volumes were 236,950 lots, and total positions increased by 14,234 to 180,658 lots. SHFE 1412 zinc contract prices opened at RMB 16,750/mt October 9, then rose to gain back early losses in the morning. Boosted by LME zinc prices, SHFE 1412 zinc contract prices edged up to RMB 16,940/mt, and closed at RMB 16,915/mt, up RMB 85/mt or 0.51%. Trading volumes increased 54,150, to 190,748 lots, and total positions were up by 20,628 lots to 187,052 lots. SHFE 1412 zinc contract prices are expected to test RMB 17,000/mt.

#0 zinc prices were between RMB 17,000-17,050/mt, with spot premiums of RMB 200-230/mt against SHFE 1412 zinc contract prices. #1 zinc prices were between RMB 16,940-16,970/mt. SHFE 1412 zinc contract prices edged up to RMB 16,810-16,830/mt. A large amount of Goods were shipped from Guangdong, with sufficient supply of Qilin and Tiefeng. But with limited Shuangyan and Yuguang zinc supply, arbitrage traders held prices firm, leaving spot premiums high. Traders only purchased lower-priced goods, though. Downstream buyers purchased as needed, keeping transactions muted. Shuangyan branded #0 zinc prices were RMB 17,030-17,050/mt, and prices for Yuguang were RMB 17,010-17,030/mt. Qilin, Tiefeng, Qinxin and Feilong zinc prices were RMB 17,000-17,020/mt. Prices for Tongguan, Baiyin and Baohui zinc were RMB 16,990-17,010/mt. SHFE 1412 zinc contract prices rose to RMB 16,920/mt in the afternoon, with spot prices up to RMB 17,100/mt, and causing spot premiums to narrow to RMB 160-200/mt. Trading was quiet.