SHANGHAI, Apr. 29 (SMM) – SHFE 1507 zinc contract opened at RMB 17,075/mt on Tuesday and slipped to RMB 16,900/mt at one point as longs booked profits. However, the July-delivery zinc followed LME zinc up at the tail of trading and ended up RMB 250/mt at RMB 17,015/mt. Trading volumes grew 19,790 lots to 175,154 lots, and positions increased 11,260 to 144,450.
Prices of #0 zinc were RMB 16,770-16,810/mt, with discounts of RMB 90-120/mt to SHFE 1506 zinc contract. #1 zinc traded at RMB 16,720-16,740/mt. Zinc smelters were more active in selling on rising zinc prices, and traders also increased supply considering tight cash at the end of the month. Downstream buyers were reluctant to buy, however, with SHFE zinc nearing RMB 17,000/mt.
In #0 zinc market, Shuangyan brand sold for RMB 16,800-16,810/mt, with discounts of RMB 90-100/mt to SHFE 1506 zinc contract. Yuguang, Qinxin and Qiling traded at RMB 16,780-16,790/mt, with discounts of RMB 110-120/mt to SHFE 1506 lead contract. Prices were RMB 16,750-16,760/mt for SMC #0 zinc, with discounts of RMB 140-150/mt to the June-delivery zinc, and prices of Indian #0 zinc were RMB 16,720-16,730/mt and RMB 16,570-16,580/mt.