SHANGHAI, May 21 (SMM) –SHFE 1507 zinc contract prices opened at RMB 16,770/mt Tuesday evening, then fluctuated around RMB 16,650/mt, and closed at RMB 16665/mt, down RMB 170/mt or 1.01%. Trading volumes increased 49,406 to 78,528 lots, and total positions fell 7,516 to 98,092. SHFE 1507 zinc contract prices opened at RMB 16,650/mt on Wednesday, then rebounded to RMB 16,705/mt. But as commodity prices plunged, SHFE 1507 zinc contract prices dropped below RMB 16,600/mt, and closed at RMB 16,630/mt, down RMB 205/mt or 1.22%. Trading volumes increased 96,038 to 242,832 lots, and total positions fell 15,706 to 89,902. SHFE 1507 zinc contract prices are expected to test RMB 16,500/mt this evening.
#0 zinc prices were between RMB 16,570-16,610/mt, RMB 110-80/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 16,540-16,560/mt. SHFE 1507 zinc contract prices fluctuated between RMB 16,670-16,700/mt, with spot discounts narrowing to RMB 110-80/mt. Some smelters were holding back goods, but traders were selling actively, leading to ample supply. Regular brands supply decreased, though, due to the fulfilling of term contract, with price spread with Shuangyan zinc narrowing. Some traders that are optimistic purchased at lower prices, and downstream buyers purchased as needed, leaving overall transactions lackluster. Huize #0 zinc prices were RMB 16,610-16,630/mt, RMB 80-60/mt below SHFE 1507 zinc contract prices. Shuangyan #0 zinc prices were RMB 16,590-16,610/mt, RMB 100-80/mt below SHFE 1507 zinc contract prices. Yuguang #0 zinc prices were RMB 16,580-16,600/mt, RMB 110-90/mt below SHFE 1507 zinc contract prices. Qilin, Feilong and Qinxin #0 zinc prices were RMB 16,570-16,590/mt, with spot discounts of RMB 110-100/mt against SHFE 1507 zinc contract prices. SMC, Baohui and Tongguan #0 zinc prices were RMB 16,530-16,550/mt, with spot discounts of RMB 150-140/mt against SHFE 1507 zinc contract prices. Indian #0 zinc prices were RMB 16,520-16,540/mt, with spot discounts of RMB 160-150/mt against SHFE 1507 zinc contract prices. SHFE 1507 zinc contract prices fell to RMB 16,580/mt in the afternoon, with spot discounts contracting to RMB 100-80/mt, and trading muted.
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