SMM Zinc Market Daily Review (2015-9-24)

SHANGHAI, Sept. 25 (SMM) – SHFE 1511 zinc contract prices opened at RMB 13,695/mt Wednesday evening, then fluctuated narrowly but fell at the end of trading, and closed at RMB 13,560/mt, up RMB 55/mt. Trading volumes were down 49,124 to 135,296 lots. Total positions decreased 9,196 to 166,000. SHFE 1511 zinc contract prices opened at RMB 13,560/mt on Thursday, then edged up to RMB 13,690/mt, and closed at RMB 13,820/mt, up RMB 315/mt or 2.33%. Trading volumes decreased 28,460 to 147,582 lots, and total positions grew 14,170 to 330,000.

#0 zinc prices were between RMB 13,910-14,060/mt, RMB 220-450/mt above SHFE 1511 zinc contract prices. #1 zinc traded at RMB 13,800-13,820/mt. Premiums of imported zinc were RMB 0-120/mt. Smelters were unwilling to sell at lows, but traders sold off goods ahead of the China’s National Day holiday, adding to supply and narrowing spot premiums. Premiums of SMC zinc were RMB 100/mt, and discounts of Peruvian zinc were RMB 60/mt. Trading among traders was brisk, but downstream buyers were cautious, with traded prices between RMB 13,940-14,100/mt in the afternoon. Traders sold proactively after release of goods under warrants, but overall transactions were sluggish.