SMM Zinc Market Daily Review (2015-4-15)

SHANGHAI, Apr. 16 (SMM) – SHFE 1506 zinc contract prices opened higher at RMB 16,350/mt Tuesday evening, then fluctuated around the 5-day moving average and closed the day at RMB 16,340/mt, down RMB 25/mt or 0.15%. Trading volumes were down 10,964 to 41,228 lots, and total positions decreased 994 to 117,182. SHFE 1506 zinc contract prices opened at RMB 16,335/mt on Wednesday, then fell to RMB 16,315/mt, but as LME zinc prices increased, SHFE 1506 zinc contract prices climbed to RMB 16,470/mt, and closed at RMB 16,425/mt, up RMB 60/mt or 0.37%. Trading volumes decreased 25,212 to 108,834 lots, and total positions increased 2,818 to 120,994. SHFE 1506 zinc contract prices are expected to test RMB 16,500/mt this evening.

#0 zinc prices were between RMB 16,240-16,280/mt, RMB 110-70/mt below SHFE 1506 zinc contract prices. #1 zinc was traded between RMB 16,150-16,160/mt. SHFE 1506 zinc contract prices fluctuated around RMB 16,350/mt after opening, with spot discounts between RMB 110-70/mt. Smelters sold normally, leading to healthy supply. Price spread between regular brands and Shuangyan zinc expanded to RMB 40-50/mt. Some downstream buyers purchased as needed as zinc prices fell for a second straight day, keeping overall transactions muted. Huize and Shuangyan #0 zinc prices were RMB 16,270-16,280/mt, RMB 70/mt below SHFE 1506 zinc contract prices. Yuguang #0 zinc prices were RMB 16,250-16,270/mt, RMB 90-80/mt below SHFE 1506 zinc contract prices. Qinxin and Qilin #0 zinc prices were RMB 16,240-16,260/mt, with spot discounts of RMB 110-100/mt against SHFE 1506 zinc contract prices. Indian and YP #0 zinc prices were RMB 16,150-16,160/mt, with spot discounts of RMB 200-190/mt against SHFE 1506 zinc contract prices. SHFE 1506 zinc contract prices surged RMB 100/mt in the afternoon, but spot discounts only widened RMB 10-20/mt, with transactions quiet.