SMM Zinc Market Daily Review (2015-4-21)

SHANGHAI, Apr. 22 (SMM) – SHFE 1506 zinc contract prices opened at RMB 16,420/mt, then touched RMB 16,530/mt, and closed the day at RMB 16,435/mt, down RMB 130/mt or 0.78%. SHFE 1506 zinc contract prices opened at RMB 16,425/mt on Tuesday, then fell to RMB 16,350/mt as a growing number of longs left the market, but rallied later on, and closed at RMB 16,420/mt, down RMB 145/mt or 0.88%. Trading volumes decreased 8,310 to 92,344 lots, and total positions decreased 11,782 to 93,174. SHFE 1506 zinc contract prices should edge down this evening.

#0 zinc prices were between RMB 16,300-16,350/mt, RMB 100-50/mt below SHFE 1506 zinc contract prices. #1 zinc was traded between RMB 16,230-16,260/mt. SHFE 1506 zinc contract prices dropped to RMB 16,350/mt, then edged up to RMB 16,410/mt. Smelters held back goods on falling zinc prices, but arbitrage traders sold actively, leaving supply healthy. Traders were unwilling to build stocks, and downstream buying interest also weakened, leaving overall transactions quiet. Shuangyan #0 zinc prices were RMB 16,330-16,350/mt, RMB 60-50/mt below SHFE 1506 zinc contract prices. Yuguang #0 zinc prices were RMB 16,320-16,340/mt, RMB 70/mt below SHFE 1506 zinc contract prices. Qilin #0 zinc prices were RMB 16,310-16,320/mt, with spot discounts of RMB 80-70/mt against SHFE 1506 zinc contract prices. Qinxin and Feilong #0 zinc prices were RMB 16,300-16,320/mt, with spot discounts of RMB 100-70/mt against SHFE 1506 zinc contract prices. SMC #0 zinc prices were RMB 16,280-16,320/mt, with spot discounts of RMB 100/mt against SHFE 1506 zinc contract prices. Indian #0 zinc prices were RMB 16,220-16,260/mt, with spot discounts of RMB 160/mt against SHFE 1506 zinc contract prices. SHFE 1506 zinc contract prices consolidated in the afternoon, with spot discounts stable.