SMM Zinc Market Daily Review (2015-4-3)

SHANGHAI, Apr. 7 (SMM) – SHFE 1506 zinc contract prices opened at RMB 16,050/mt Thursday evening, then inched up to as high as RMB 16195/mt, and closed the day at RMB 16,130/mt, up RMB 140/mt or 0.88%. Trading volumes were up 42,340 to 91,248 lots, and total positions increased 8,302 to 133,072. SHFE 1506 zinc contract prices opened at RMB 16,135/mt on Friday, and fluctuated between RMB 16,100-16,160/mt and closed at RMB 16,160/mt, up 1.06%. Trading volumes increased 46,874 to 149,792 lots, and total positions grew 8,372 to 133,142. SHFE 1506 zinc contract prices are expected to rise further in the near term.

#0 zinc prices were between RMB 16,010-16,030/mt, RMB 110-100/mt below SHFE 1506 zinc contract prices. #1 zinc was traded between RMB 15,900-15,930/mt. SHFE 1506 zinc contract prices fluctuated between RMB 16,100-16,140/mt after opening, with spot discounts widening to RMB 110-100/mt. Downstream buying interest was low. Traders were cautious due to small SHFE zinc price volatility and since smelters and cargo holders held prices firm, with overall transactions muted. Shuangyan #0 zinc prices were RMB 15,900-15,910/mt, RMB 100-80/mt below SHFE 1506 zinc contract prices. Shuangyan #0 zinc prices were RMB 16,020-16,030/mt, RMB 100/mt below SHFE 1506 zinc contract prices. Yuguang, Qinxin and Qilin #0 zinc prices were RMB 16,010-16,020/mt, with spot discounts of RMB 110-100/mt against SHFE 1506 zinc contract prices. Tongguan and SMC #0 zinc prices were RMB 15,990-16,010/mt, with spot discounts of RMB 130-120/mt against SHFE 1506 zinc contract prices. Indian #0 zinc prices were RMB 15,910-15,930/mt, with spot discounts of RMB 220-200/mt against SHFE 1506 zinc contract prices.