SHANGHAI, Oct. 27 (SMM) – SHFE 1412 zinc contract prices opened at RMB 16,590/mt Thursday evening, then fluctuated between RMB 16,560-16,650/mt, and closed at RMB 16,625/mt, up RMB 165/mt or 1%. Trading volumes increased 7,518 to 182,842 lots, and total positions increased 4,314 to 158,582 lots. SHFE 1412 zinc contract prices opened at RMB 16,625/mt October 24, dipping to RMB 16,600/mt in the morning before inching up later on. SHFE 1412 zinc contract prices met resistance at the 60-day moving average. When combined with a large number of longs leaving the market, SHFE 1412 zinc contract prices lacked ability to rise, and closing at RMB 16,640/mt, up RMB 180/mt or 1.09%. Trading volumes decreased 137,966, to 288,262 lots, and total positions were down 9,620 lots to 144,648 lots. Resistance from the 60-day moving average will remain.
#0 zinc prices were between RMB 16,870-16,930/mt, with spot premiums of RMB 240-340/mt against SHFE 1412 zinc contract prices. #1 zinc prices were between RMB 16,830-16,850/mt. SHFE 1412 zinc contract prices were up RMB 200/mt from the previous trading day, with spot premiums down from RMB 290-340/mt to RMB 240-300/mt. Smelters increased sales on rising zinc prices. When combined with the month’s end factor, supply available was ample. But investors were unwilling to purchase on high spot premiums, which in turn drag down spot prices. Downstream buyers that had built stocks at lower prices early last week remained cautious on market pessimism, leaving overall trading muted. Shuangyan branded #0 zinc prices were RMB 16,920-16,930/mt, and prices for Yuguang and Qilin zinc were RMB 16,900-16,920/mt. Tiefeng and Baiyin zinc prices were RMB 16,870-16,900/mt. Belgian #0 zinc prices were RMB 16,840-16,870/mt. SHFE 1412 zinc contract prices hovered around RMB 16,640/mt in the afternoon, with spot premiums remaining largely unchanged.