SMM Zinc Market Daily Review (2015-8-25)

SHANGHAI, Aug. 26 (SMM) –SHFE 1510 zinc contract prices opened at RMB 14,250/mt Monday evening, then dropped to RMB 14,280/mt, but later rose to RMB 14,400-14,500/mt, and closed at RMB 14,445/mt, down RMB 55/mt or 0.38%. SHFE 1510 zinc contract prices dipped to RMB 14,325/mt on Tuesday then rallied to RMB 14,450/mt. As China’s A-share plunged in the afternoon, SHFE 1510 zinc contract prices fell and closed at RMB 14,360/mt, down RMB 135/mt or 0.93%. Trading volumes increased 274 to 170,648 lots, and total positions decreased 3,308 to 129,016. SHFE 1510 zinc contract prices will look for price floor.  

#0 zinc prices were between RMB 14,730-14,880/mt, RMB 300-450/mt above SHFE 1510 zinc contract prices. #1 zinc supply was tight, with prices of RMB 14,650-14,660/mt. Spot premiums of imported #0 zinc were RMB 50-120/mt against SHFE 1510 zinc contract prices. Market players purchased at lows as zinc prices fell, but supply of a few brands was limited. Traders held their quotes firm, increasing spot premiums, but trading was limited. Traded prices were between RMB 14,690-14,830/mt in the afternoon.