SMM Zinc Market Daily Review (2014-11-28)

SHANGHAI, Dec. 1 (SMM) – SHFE 1501 zinc contract prices opened at RMB 16,825/mt Thursday evening, and dipped to as low as USD 16,750/mt as a large number of investors left the market, and closing at RMB 16,770/mt, down RMB 60/mt or 0.36%. Trading volumes decreased 6,556 to 57,606 lots, and total positions were down 3,856 to 123,790 lots. SHFE 1502 zinc contracts became the most actively traded contracts, with total positions decreasing 876 lots to 119,104 lots. SHFE 1501 zinc contract prices opened at RMB 16,755/mt Friday, then inched down to RMB 16,660/mt in the morning with the exodus of longs, then leveled out between RMB 16720-16,760/mt and closing at RMB 16,730/mt, down RMB 105/mt or 0.62%. Trading volumes increased 61,110 to 186,956 lots, and total positions increased 2,038 to 122,018 lots. SHFE 1501 zinc contract prices are expected to test moving averages below this evening.
 
#0 zinc prices were between RMB 16,860-16,960/mt, with spot premiums of RMB 140-210/mt against SHFE 1501 zinc contract prices. #1 zinc prices were between RMB 16,780-16,830/mt, RMB 70/mt above SHFE 1501 zinc contract prices. SHFE 1501 zinc contract prices rose to RMB 16,730-16,760/mt after dipping to RMB 16,700/mt, down RMB 50-80/mt from the previous trading day, with spot premiums of #0 zinc widening RMB 10/mt. Cargo holders were actively selling to generate cash, and some traders purchased at lows. Downstream buyers replenished stocks modestly at the week’s end, but overall transactions were muted. Shuangyan #0 zinc prices were RMB 16,900-16,960/mt, RMB 200-210/mt above SHFE 1501 zinc contract prices. Yuguang and Qilin #0 zinc prices were RMB 16,880-16,920/mt, RMB 160-180/mt above SHFE 1501 zinc contract prices, with spot premiums between RMB 140-150/mt at the Qichu Warehouse. Qinxin, Jiulong, and Shuikoushan zinc prices were RMB 16,860-16,900/mt, with premiums of RMB 140-150/mt against SHFE 1501 zinc contract prices. Tiefeng, Baiyin and SMC zinc prices were RMB 16,860-16,880/mt, with premiums of RMB 130-140/mt against SHFE 1501 zinc contract prices. SHFE 1501 zinc prices fluctuated between RMB 16,720-16,760/mt in the afternoon, muting transactions.