SMM Zinc Market Daily Review (2015-10-13)

SHANGHAI, Oct. 14 (SMM) –SHFE 1512 zinc contract prices opened at RMB 14,570/mt Monday evening, then hovered around RMB 14,570/mt and closed at RMB 14,535/mt, down RMB 35/mt or 0.24%. Trading volumes decreased 115,300 to 178,414 lots, and total positions increased 3,882 to 171,470. SHFE 1512 zinc contract prices dipped to RMB 14400/mt Tuesday morning, but rallied to RMB 14500/mt later the sday due to exodus of shorts after profit-taking, and closed at RMB 14,565/mt, down RMB 5/mt or 0.03%. Trading volumes were 459,812 lots. Total positions increased 526 to 168,114. Total positions of zinc on the SHFE grew 3,550 to 340,086.

#0 zinc prices were between RMB 14,590-14,630/mt, RMB 90-140/mt above SHFE 1511 zinc contract prices. #1 zinc traded at RMB 14,440-14,460/mt. Imported zinc prices ranged from RMB 80/mt below to RMB 30/mt above SHFE 1511 zinc contract prices. Hedging traders released goods as zinc prices fell, and smelters also sold normally, leaving supply sufficient. Traders purchased registered brands with low spot premiums proactively. Inflows of imported goods shrank on falling SMM/LME zinc price ratio. Downstream buyers refrained from purchasing, overall transactions quiet and traded prices between RMB 14,580-14,610/mt in the afternoon. Spot premiums narrowed on weakened demand. Zinc prices rose at the end of trading, incentivizing traders’ purchases. Quotes also increased, muting trading.