SHANGHAI, Oct. 24 (SMM) –SHFE 1412 zinc contract prices opened at RMB 16,400/mt Wednesday evening, then fluctuated between RMB 16,350-16,420/mt, and closed at RMB 16,390/mt, up RMB 80/mt or 0.49%. Trading volumes decreased 59,376 to 175,324 lots, and total positions increased 8,364 to 141,184 lots. SHFE 1412 zinc contract prices opened at RMB 16,390/mt October 23, then hovered between RMB 16,370-16,420/mt. Better-than-expected HSBC’s PMI for China gave little boost to the market, but SHFE 1412 zinc contract prices surged with LME zinc prices, rising as much as 2%, touching RMB 16,665/mt, and closing at RMB 16,615/mt, up RMB 305/mt or 1.87%. Trading volumes increased 79,422, to 426,228 lots, and total positions were up 21,448 lots to 154,268 lots. SHFE 1412 zinc contract prices are expected to outperform LME zinc in the near term.
#0 zinc prices were between RMB 16,690-16,770/mt, with spot premiums of RMB 310-360/mt against SHFE 1412 zinc contract prices. #1 zinc prices were between RMB 16,640-16,670/mt. SHFE 1412 zinc contract prices fluctuated between RMB 16,380-16,430/mt, and were up RMB 70/mt from the previous trading day. Smelters increased sales, but traders were holding prices firm, leaving supply available limited. A large amount of imported zinc flowed to domestic market. High premiums and traders busy settling, left trading muted. Shuangyan branded #0 zinc prices were RMB 16,720-16,760/mt, and prices for Yuguang zinc were RMB 16,700-16,750/mt. Tiefeng, Qilin, and Jiulong zinc prices were RMB 16,690-16,730/mt. Belgian #0 zinc prices were RMB 16,660-16,700/mt. As SHFE 1412 zinc contract prices inched up, spot premiums dropped to RMB 280/mt, allowing cargo holders to refrain from selling. Trading of Shuangyan #0 zinc was muted.