SMM Zinc Market Daily Review (2014-10-14)

SHANGHAI, Oct. 15 (SMM) – SHFE 1412 zinc contract prices opened at RMB 16,830/mt overnight, and rose to RMB 16,800-16,850/mt after briefly dipping to the 5-day moving average, and closed at RMB 16,825/mt, up RMB 95/mt or 0.57%. Trading volumes decreased 92,352 to 137,852 lots, and total positions increased by 5,672 to 172,846 lots. SHFE 1412 zinc contract prices opened at RMB 16,820/mt October 14, then fluctuated between RMB 16,780-16,830/mt, and closed at RMB 16,805/mt, up RMB 75/mt or 0.75%. Trading volumes decreased 131,924, to 272,048 lots, and total positions were down 6,760 lots to 160,414 lots. SHFE 1412 zinc contract prices are expected to fluctuate around RMB 16,800/mt.

#0 zinc prices were between RMB 16,980-17,050/mt, with spot premiums of RMB 180-240/mt against SHFE 1412 zinc contract prices. #1 zinc prices were between RMB 16,940-16,950/mt. SHFE 1412 zinc contract prices fluctuated around RMB 16,800/mt after opening, with spot premiums between RMB 180-240/mt. Qilin zinc supply was ample as cargo holders sold actively, but Yuguang and Shuangyan zinc was in tight supply, keeping spot premiums firm and price spreads to expand. SHFE spot-month zinc contract prices in Guangdong were RMB 70-80/mt above spot prices. Traders purchased goods from Guangdong to sell Qilin zinc in Shanghai, leaving trading brisk. Downstream lacked buying interest as zinc prices stayed above RMB 17,000/mt. Shuangyan branded #0 zinc prices were RMB 17,040-17,050/mt, and prices for Yuguang were RMB 17,020-17,040/mt. Qilin and Tiefeng zinc prices were RMB 16,980-17,000/mt.  a small quantity of YP and AZ zinc was available, with quotes RMB 200/mt above SHFE 1412 zinc contract prices. Spot premiums remained largely unchanged as SHFE 1412 zinc contracts consolidated in the afternoon, keeping traders on the sidelines.