SMM Zinc Market Daily Review (2015-1-9)

SHANGHAI, Jan. 12 (SMM) – SHFE 1503 zinc contract prices opened at RMB 16,595/mt last Thursday evening, then dipped to RMB 16,410/mt, and closing at RMB 16,470/mt, down RMB 45/mt or 0.27%. Trading volumes were up 6,100 to 109,590 lots, and total positions increased 2,444 to 163,250. SHFE 1503 zinc contract prices opened at RMB 16,470/mt on Friday, touching RMB 16,600/mt in the afternoon then falling back down, and closing at RMB 16,455/mt, down RMB 60/mt or 0.36%. Trading volumes increased 22,878 to 203,098 lots. Total positions were down 2,452 to 158,354. SHFE 1503 zinc contract prices are expected to test support from the 20-day moving average this evening.

#0 zinc prices were between RMB 16,680-16,710/mt, with spot premiums of RMB 220-250/mt against SHFE 1503 zinc contract prices. #1 zinc prices were RMB 16,600-16,630/mt. SHFE 1503 zinc contract prices fluctuated around RMB 16,460/mt, down RMB 20/mt, with spot premiums between RMB 240-270/mt. Sales at smelters slowed due to a large influx of imported zinc, and cargo holders lowered spot premiums to RMB 220-250/mt. Trading remained quiet, though some downstream buyers replenished goods as needed. Shuangyan and Huize #0 zinc prices were RMB 16,700-16,710/mt, RMB 240-250/mt above SHFE 1503 zinc contract prices. Qilin and Qinxin zinc prices were between RMB 16,680-16,700/mt, RMB 220-230/mt above SHFE 1503 zinc contract prices. Tongguan #0 zinc prices were between RMB 16,660-16,680/mt, RMB 200-220/mt above SHFE 1503 zinc contract prices. Indian, Netherlandish, Norwegian and Russian zinc prices were between RMB 16,620-16,640/mt, RMB 160-180/mt above SHFE 1503 zinc contract prices. SHFE 1503 zinc contract prices rose RMB 50/mt at the end of trading, causing spot premiums to narrow RMB 20/mt. Spot premiums of Shuangyan zinc were around RMB 220/mt at one point, causing some bargain hunters to enter the market, but trading was muted.