SMM Zinc Market Daily Review (2015-5-22)

SHANGHAI, May 25 (SMM) –SHFE 1507 zinc contract prices opened at RMB 16,540/mt Thursday evening, then reached RMB 16,685/mt, but dropped back to RMB 16,600/mt later on and closed at RMB 16,585/mt, up RMB 5/mt or 0.03%. Total positions fell to their lowest over the past month. SHFE 1507 zinc contract prices opened at RMB 16,595/mt on Friday, then fluctuated around RMB 16,600/mt, and closed at RMB 16,615/mt, up RMB 35/mt or 0.21%. Trading volumes decreased 61,004 to 153,452 lots, and total positions fell 1,906 to 79,798. SHFE 1507 zinc contract prices are expected to test support from the 60-day moving average this evening.

#0 zinc prices were between RMB 16,520-16,560/mt, RMB 90-70/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 16,510-16,520/mt. SHFE 1507 zinc contract prices inched up to RMB 16,630/mt, with spot discounts largely unchanged. Some optimistic smelters were holding back goods on rising zinc prices, causing spot supply to decrease and supporting spot discounts to narrow. Trading between traders was active, and downstream buying interest also improved at the week’s end. Shuangyan #0 zinc prices were RMB 16,540-16,560/mt, RMB 70/mt below SHFE 1507 zinc contract prices. Yuguang #0 zinc prices were RMB 16,530-16,550/mt, RMB 90-80/mt below SHFE 1507 zinc contract prices. Qilin, Feilong and Qinxin #0 zinc prices were RMB 16,520-16,550/mt, with spot discounts of RMB 90/mt against SHFE 1507 zinc contract prices. SMC and Baohui #0 zinc prices were RMB 16,480-16,500/mt, with spot discounts of RMB 130-120/mt against SHFE 1507 zinc contract prices. Indian #0 zinc prices were RMB 16,460-16,480/mt, with spot discounts of RMB 150-130/mt against SHFE 1507 zinc contract prices. SHFE 1507 zinc contract prices remained steady in the afternoon, with spot discounts largely unchanged, and trading muted.