SHANGHAI, May 4 (SMM) – SHFE 1507 zinc contract opened at RMB 16,985/mt on Thursday and climbed to RMB 17,110/mt in the afternoon, but surrendered earlier gains due to risk aversion before the May Day holiday and ended at RMB 17,000/mt, up RMB 45/mt, or 0.27%.
Prices of #0 zinc were RMB 16,810-16,840/mt, with discounts of RMB 160-130/mt to SHFE 1507 zinc contract and RMB 120-90/mt to SHFE 1506 zinc contract. #1 zinc traded at RMB 16,740-16,790/mt. Large traders that held a majority of goods of ordinary brands refrained from selling, pushing up prices. Traders and downstream buyers both showed little interest in buying before the May Day holiday.
In #0 zinc market, Shuangyan brand sold for RMB 16,820-16,840/mt, with discounts of RMB 150-130/mt to SHFE 1507 zinc contract. Yuguang, Qinxin and Qiling traded at RMB 16,810-16,830/mt, with discounts of RMB 160-140/mt to SHFE 1507 lead contract. Prices were RMB 16,790-16,820/mt for SMC #0 zinc, with discounts of RMB 180-170/mt to the July-delivery zinc. Trades were thin in the afternoon with companies closing for holiday.