SMM Zinc Market Daily Review (2014-11-26)

SHANGHAI, Nov. 27 (SMM) – SHFE 1501 zinc contract prices opened higher at RMB 17,060/mt last Friday evening, then inched lower to USD 17,000/mt, and closing at RMB 16,955/mt, up RMB 195/mt or 1.16%. Trading volumes increased 126,528 to 243,234 lots, and total positions were up 5,266 to 185,722 lots. SHFE 1501 zinc contract prices opened at RMB 16,955/mt Monday, then fluctuated between RMB 16,840-16,940/mt during the day, and closing at RMB 16,875/mt, up RMB 115/mt or 0.69%. Trading volumes decreased 12,588 to 167,868 lots, and total positions increased 78,412 to 402,994 lots. SHFE 1501 zinc contract prices are expected to test support from RMB 16,800/mt this evening.
 
#0 zinc prices were between RMB 16,970-17,060/mt, with spot premiums of RMB 120-210/mt against SHFE 1501 zinc contract prices. #1 zinc prices were between RMB 16,900-16,920/mt, RMB 80-100/mt above SHFE 1501 zinc contract prices. SHFE 1501 zinc contract prices fell to RMB 16,840-16,850/mt after opening, down RMB 10-20/mt from the previous trading day. Spot premiums dropped as smelters are looking to convert inventories to cash. Arbitrage traders moved goods actively, leading to ample supply. But some traders busing with settling are unwilling to purchase due to weakening spot premiums, and downstream buying interest did not improve, either, leaving overall transactions muted. Shuangyan #0 zinc prices were RMB 17,040-17,060/mt. Yuguang #0 zinc prices were RMB 17,020-17,040/mt. Qinxin, Jiulong, and Shuikoushan zinc prices were RMB 16,990-17,010/mt. Tiefeng and Baiyin zinc prices were RMB 16,970-16,990/mt. SHFE 1501 zinc prices inched down in the afternoon, but spot premiums stayed between RMB 130-210/mt. Transactions muted.