SMM Zinc Market Daily Review (2015-8-19)

SHANGHAI, Aug. 20 (SMM) –SHFE 1510 zinc contract prices opened at RMB 14,600/mt Tuesday evening, and closed at RMB 14,610/mt, down RMB 180/mt or 1.22%. SHFE 1510 zinc contract prices hovered around RMB 14,610/mt on Wednesday morning. China’s A-share market gained ground in the afternoon, and the US dollar index fell. When combined with short covering, SHFE 1510 zinc contract prices rose to RMB 14,700/mt, and closed at RMB 14,695/mt, down RMB 95/mt or 0.64%. Trading volumes decreased 8,012 to 95,836 lots, and total positions decreased 2,344 to 144,506. SHFE 1509 zinc contract prices will move sideways.  

#0 zinc prices were between RMB 14,820-14,870/mt, RMB 200-260/mt above SHFE 1510 zinc contract prices on Tuesday. #1 zinc prices were RMB 14,780/mt. Spot premiums of imported #0 zinc were RMB 80-120/mt against SHFE 1510 zinc contract prices. Smelters held back goods, but supply was ample, with the price spread between domestic and imported zinc expanding further. Downstream buyers purchased as needed, with overall trading made among traders. Zinc available tightened in the afternoon, with traders buying actively and prices between RMB 14,820-14,910/mt.