SHANGHAI, Oct. 22 (SMM) – SHFE 1412 zinc contract prices opened lower at RMB 16,170/mt Monday evening, then fluctuated between RMB 16,160-16,265/mt, and closed at RMB 16,215/mt, down RMB 95/mt or 0.58%. Trading volumes decreased 59,088 to 220,340 lots, and total positions increased 8,622 to 157,268 lots. SHFE 1412 zinc contract prices opened at RMB 16,210/mt October 21, then clawed back some losses due to rebounding LME zinc prices and better-than-expected Q3 growth in China. As LME base metals weakened in the afternoon, SHFE 1412 zinc contract prices fell to as low as RMB 16,140/mt, and closed at RMB 16,150/mt, down RMB 160/mt or 0.98%. Trading volumes decreased 29,530, to 382,186 lots, and total positions were down 6,716 lots to 141,930 lots. SHFE 1412 zinc contract prices are expected to test support from RMB 16,000/mt now that LME zinc prices hit a three-month low.
#0 zinc prices were between RMB 16,570-16,610/mt, with spot premiums of RMB 320-360/mt against SHFE 1412 zinc contract prices. #1 zinc prices were between RMB 16,500-16,530/mt, and prices for Kazakhstan #1 zinc were RMB 16,450-16,470/mt. SHFE 1412 zinc contract prices fell RMB 50/mt from the previous trading day, causing spot premiums to expand RMB 20/mt. Smelters held back from selling on falling prices, leading to tight supply. Arbitrage traders moved goods but modestly due to limited inventories whilst purchasing at lower prices. Downstream buyers purchased as needed. Shuangyan branded #0 zinc prices were RMB 16,590-16,610/mt, and prices for Yuguang and Hongda zinc were RMB 16,580-16,600/mt. Baiyin, Qilin, and Jiulong zinc prices were RMB 16,570-16,580/mt. SHFE 1412 zinc contract prices plummeted to RMB 16,150/mt in the afternoon, allowing spot premiums to expand to RMB 330-370/mt, with trading muted.