SMM Zinc Market Daily Review (2014-12-31)

SHANGHAI, Jan. 4 (SMM) – SHFE 1503 zinc contract prices opened at RMB 16,420/mt last Tuesday evening, then surged to RMB 16,800/mt before moving between RMB 16,710-16,750/mt, and closing at RMB 16,730/mt, up RMB 355/mt or 2.17%. Trading volumes increased over 10,000 to 169,882 lots, and total positions increased 20,000 to 147,200. SHFE 1503 zinc contract prices opened at RMB 16,715/mt on Wednesday. HSBC’s December PMI for China fell short of market expectations, causing SHFE 1503 zinc contract prices to roll back early gains. SHFE 1503 zinc contract prices rose in the afternoon and touched RMB 16,800/mt with support from LME zinc prices, and closed at RMB 16,780/mt, up RMB 405/mt or 2.47%. Trading volumes increased 167,440 to 309,222 lots, and total positions increased 24,346 to 150,958. SHFE 1503 zinc contract prices are expected to maintain upward momentum after the New Year’s Day holiday.

#0 zinc prices were between RMB 16,840-16,920/mt, with spot premiums of RMB 200-250/mt against SHFE 1502 zinc contract prices. #1 zinc prices were RMB 16,790-16,800/mt. SHFE 1503 zinc contract prices hovered around RMB 16,730/mt after opening, then fell to RMB 16,640/mt. Spot premiums narrowed to RMB 50-60/mt. Transactions were extremely quiet as downstream buying interest was weak. Huize #0 zinc prices were RMB 16,890-16,920/mt, RMB 250-260/mt above SHFE 1503 zinc contract prices. Shuangyan #0 zinc prices were RMB 16,880-16,910/mt, RMB 240-250/mt above SHFE 1503 zinc contract prices. Qilin, Mengzi and Qinxin zinc prices were between RMB 16,840-16,880/mt, RMB 200-220/mt above SHFE 1503 zinc contract prices. SMC #0 zinc prices were between RMB 16,830-16,850/mt, RMB 190-200/mt above SHFE 1503 zinc contract prices. Trading was extremely quiet before the holiday.