SMM Zinc Market Daily Review (2015-11-18)

SHANGHAI, Nov. 19 (SMM) – SHFE 1601 zinc contract prices opened at RMB 12,680/mt Tuesday evening, then inched up to RMB 12,775/mt, and closed at RMB 12,585/mt, down RMB 95/mt. Trading volumes were 260,000 lots, and total positions decreased 1,992 to 230,000. SHFE 1601 zinc contract prices opened at RMB 12,585/mt on Wednesday, and fell to RMB 12,400/mt. In the afternoon, SHFE 1601 zinc contract prices dipped to RMB 12,300/mt, and closed at RMB 12,450/mt, down RMB 230/mt. Trading volumes decreased 33,000 to 756,000 lots. Total positions decreased 756 to 231,000.

#0 zinc prices were between RMB 12,810-12,880/mt, RMB 430-480/mt above SHFE 1512 zinc contract prices. #1 zinc traded at RMB 12,630-12,650/mt. Imported zinc were RMB 140-180/mt above SHFE 1601 zinc contract prices. Smelters held back goods as zinc prices continued to fall. Traders held prices firm, with availability of imported zinc decreasing. Downstream buyers purchased as needed. Some traders shipped goods from Nanchu warehouse to Shanghai due to the price spread between Shanghai and Guangdong after taking into consideration freight charges. Traded prices were between RMB 12,770-12,860/mt in the afternoon. Downstream buyers mainly purchased imported zinc.