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

SHANGHAI, Oct. 11 (SMM) – SHFE 1412 zinc contract prices opened at RMB 16,865/mt on Thursday evening, and touched as high as RMB 16,985/mt. But as a large number of longs left the market after taking profit, SHFE 1412 zinc contract prices fell and found support from RMB 16,830/mt, closed at RMB 16,830/mt, up RMB 25/mt or 0.15%. Trading volumes increased 31,680 to 268,630 lots, and total positions decreased by 930 to 186,122 lots. SHFE 1412 zinc contract prices opened at RMB 16,830/mt October 10, holding stable around RMB 16,800/mt in the morning. But dragged down by LME zinc prices, SHFE 1412 zinc contract prices tumbled to RMB 16,600/mt, and closed at RMB 16,645/mt, down RMB 160/mt or 0.95%. Trading volumes increased 81,636, to 509,334 lots, and total positions were down by 14,244 lots to 172,808 lots. SHFE 1412 zinc contract prices are expected to fluctuate weakly.

#0 zinc prices were between RMB 16,960-17,040/mt, with spot premiums of RMB 180-240/mt against SHFE 1412 zinc contract prices. #1 zinc prices were between RMB 16,930-16,960/mt. SHFE 1412 zinc contract prices fluctuated in a wide range, and dipped to as low as RMB 16,705/mt, but rallied to RMB 16,800/mt later on, with spot premiums between RMB 200-220/mt in the morning. Spot premiums expanded to RMB 200-240/mt later the day. Spot premiums of Qilin zinc were lowered to RMB 180-230/mt due to ample supply. Traders bought at lows whilst selling at highs, and downstream buyers replenished stocks at the week’s end, causing transactions to improve. Shuangyan branded #0 zinc prices were RMB 16,990-17,040/mt, and prices for Yuguang were RMB 16,980-17,030/mt. Qilin, Qinxin and Feilong zinc prices were RMB 16,960-17,020/mt. Prices for Tongguan and Baiyin were RMB 16,950-17,000/mt. As SHFE 1412 zinc contract prices fell to RMB 16,605/mt in the afternoon, spot discounts expanded to RMB 230-260/mt, with trading brisk.