SMM Zinc Market Daily Review (2015-6-25)

SHANGHAI, Jun. 26 (SMM) – SHFE 1509 zinc contracts became the most actively traded contracts Wednesday evening, with prices opening at RMB 15,790/mt, then falling below the 5-day moving average, but stabilizing at RMB 15,650/mt. Finally, SHFE 1509 zinc contract prices closed at RMB 15,645/mt, down RMB 70/mt. SHFE 1509 zinc contract prices fluctuated between RMB 15,670-15,690/mt on Thursday, and fell to RMB 15620-15640/mt in the afternoon, closing at RMB 15,635/mt, down RMB 80/mt or 0.51%. Trading volumes increased 10,550 to 74,010 lots, and total positions grew 6,190 to 111,270. SHFE 1509 zinc contract prices will fall to test support from RMB 15,600/mt.

#0 zinc prices were between RMB 15,660-15,690/mt, RMB 0-20/mt below SHFE 1509 zinc contract prices. #1 zinc prices were RMB 15,630-15,650/mt. SHFE 1509 zinc contract prices fluctuated around RMB 156,70/mt after opening, with spot discounts between RMB 0-10/mt. SHFE 1509 zinc contract prices edged up RMB 20/mt after 11:00 am, with spot prices RMB 10-20/mt below SHFE 1509 zinc contract prices. Traders sold actively to generate cash, leaving supply ample. But some traders were unwilling to purchase on month-end settlement. When combined with falling zinc prices, downstream buying interest was also weak, with trading quiet. SHFE 1509 zinc contract prices fell to RMB 15,640/mt in the afternoon, with spot premiums of RMB 0-20/mt.