SHANGHAI, Oct. 17 (SMM) – SHFE 1412 zinc contract prices opened low at RMB 16,535/mt overnight, and fell to RMB 16,365/mt with the entrance of shorts, and closed at RMB 16,370/mt, down RMB 365/mt or 2.18%. Trading volumes decreased 12,724 to 408,086 lots, and total positions increased 4,280 to 169,010 lots. SHFE 1412 zinc contract prices opened at RMB 16,370/mt October 16, then extended declines in the morning, dipping to as low as RMB 16,225/mt. In the afternoon, SHFE 1412 zinc contract prices rallied to RMB 16,400/mt before falling, and closed at RMB 16,290/mt, down RMB 445/mt or 2.66%. Trading volumes increased 91,124, to 712,802 lots, and total positions were down 4,148 lots to 160,582 lots. Any further declines of SHFE 1412 zinc contract prices are expected to be limited.
#0 zinc prices were between RMB 16,580-16,650/mt, with spot premiums of RMB 280-350/mt against SHFE 1412 zinc contract prices. #1 zinc prices were between RMB 16,480-16,540/mt, with the price spread between #1 and #0 zinc expanding slightly to RMB 70-80/mt. SHFE 1412 zinc contract prices dipped to RMB 16,250-16,270/mt before rising, hovering around RMB 16,300/mt, with spot premiums narrowing from RMB 300-350/mt to RMB 280-330/mt. Smelters held back goods as zinc prices fall, but falling SHFE zinc prices also allowed traders to move goods actively, leaving supply sufficient and transactions brisk. Downstream buyers also entered the market, causing trading to improve. Shuangyan branded #0 zinc prices were RMB 16,610-16,650/mt, and prices for Yuguang were RMB 16,600-16,640/mt. Qilin, Qinxin, Feilong and Baiyin zinc prices were RMB 16,580-16,630/mt. SHFE 1412 zinc contract prices consolidated in the afternoon, with transactions largely unchanged.