SHANGHAI, May 28 (SMM) –SHFE 1508 zinc contract prices opened at RMB 16,455/mt Tuesday evening, then rose as a growing number of longs entered the market, and closed at RMB 16,540/mt, down RMB 60/mt or 0.36%. Trading volumes increased 22,238 to 40,566 lots, and total positions grew 7,766 to 97,654. SHFE 1508 zinc contract prices opened at RMB 16,565/mt on Wednesday. A growing number of longs entered the market as profit at China’s large industrials in April rose 2.6% YoY, pushing up SHFE 1508 zinc contract prices to RMB 16,675/mt. SHFE 1508 zinc contract prices hovered around RMB 16,600/mt, and closed at RMB 16,630/mt. Trading volumes decreased 10,862 to 93,034 lots, and total positions grew 18,070 to 107,958. SHFE 1508 zinc contract prices are expected to fluctuate between RMB 16,400-16,700/mt this evening.
#0 zinc prices were between RMB 16,520-16,550/mt, RMB 90-70/mt below SHFE 1507 zinc contract prices. #1 zinc prices were RMB 16,480-16,500/mt. SHFE 1507 zinc contract prices fluctuated around RMB 16,610/mt, with spot discounts largely unchanged. Smelters were selling normally, leaving supply sufficient. But traders lacking arbitrage opportunity stayed on the sidelines, and downstream buying interest was weak, leaving overall transactions quiet. Huize #0 zinc prices were RMB 16,550-16,570/mt, RMB 60-50/mt below SHFE 1507 zinc contract prices. Shuangyan #0 zinc prices were RMB 16,540-16,550/mt, RMB 70/mt below SHFE 1507 zinc contract prices. Yuguang #0 zinc prices were RMB 16,530-16,540/mt, RMB 80/mt below SHFE 1507 zinc contract prices. Feilong, Qilin and Qinxin #0 zinc prices were RMB 16,520-16,530/mt, with spot discounts of RMB 90/mt against SHFE 1507 zinc contract prices. Baohui and Tongguan #0 zinc prices were RMB 16,490-16,510/mt, with spot discounts of RMB 120-100/mt against SHFE 1507 zinc contract prices. SMC and YP #0 zinc prices were RMB 16,490-16,510/mt, with spot discounts of RMB 120-110/mt against SHFE 1507 zinc contract prices. Indian #0 zinc prices were RMB 16,470-16,480/mt, with spot discounts of RMB 140/mt against SHFE 1507 zinc contract prices. Brazilian, Peruvian and Namibia’s #0 zinc prices were RMB 16,450-16,470/mt, with spot discounts of RMB 160-150/mt against SHFE 1507 zinc contract prices. SHFE 1507 zinc contract prices remained steady in the afternoon, with spot discounts largely unchanged.
