SMM Zinc Market Daily Review (2015-1-13)

SHANGHAI, Jan. 14 (SMM) – SHFE 1503 zinc contract prices opened at RMB 16,310/mt Monday evening, then fluctuated between RMB 16,260-16,365/mt, and closing at RMB 16,350/mt, down RMB 135/mt or 0.82%. Trading volumes were down over 20,000 to 67,484 lots, and total positions increased 3,186 to 161,870. SHFE 1503 zinc contract prices opened at RMB 16,350/mt on Tuesday, then inched down with crude oil and copper prices, dipping to as low as RMB 16,250/mt in the afternoon, and closing at RMB 16,255/mt, down RMB 230/mt or 1.4%. Trading volumes decreased 28,974 to 153,358 lots. Total positions were up 1,646 to 160,330. SHFE 1503 zinc contract prices are expected to remain weak in the near term.

#0 zinc prices were between RMB 16,570-16,650/mt, with spot premiums of RMB 220-280/mt against SHFE 1503 zinc contract prices. #1 zinc prices were RMB 16,500-16,510/mt. SHFE 1503 zinc contract prices fluctuated around RMB 16,360/mt, but spot premiums narrowed from RMB 240-280/mt to RMB 210-250/mt. Only a few smelters held back goods at lower prices, but supply was sufficient due to a large inflow of imported zinc early in the week. Cargo holders lowered spot premiums due to market pessimism and weak demand. Most downstream buyers were bearish, so were unwilling to replenish stocks. Huize #0 zinc prices were RMB 16,620-16,670/mt, RMB 270-300/mt above SHFE 1503 zinc contract prices. Shuangyan #0 zinc prices were RMB 16,600-16,650/mt, RMB 250-280/mt above SHFE 1503 zinc contract prices. Mengzi, Qilin and Qinxin zinc prices were between RMB 16,570-16,610/mt, RMB 220-240/mt above SHFE 1503 zinc contract prices. Tongguan and Tiefeng #0 zinc prices were between RMB 16,560-16,600/mt, RMB 200-230/mt above SHFE 1503 zinc contract prices. CZP and Peruvian zinc prices were between RMB 16,510-16,520/mt, RMB 150-160/mt above SHFE 1503 zinc contract prices. SHFE 1503 zinc contract prices inched down below RMB 16,300/mt in the afternoon, but spot premiums remained between RMB 220-260/mt.