SMM Zinc Market Daily Review (2015-4-16)

SHANGHAI, Apr. 17 (SMM) – SHFE 1506 zinc contract prices opened at RMB 16,400/mt Wednesday evening, then climbed to RMB 16,550/mt, and closed the day at RMB 16555/mt, up RMB 180/mt or 1.10%. Trading volumes were up 40,806 to 82,034 lots, and total positions increased 6,170 to 127,164. SHFE 1506 zinc contract prices opened at RMB 16,560/mt on Thursday, then leveled off as a large number of investors left the market, and closed at RMB 16,560/mt, up RMB 185/mt or 1.13%. Trading volumes increased 40,946 to 149,780 lots, and total positions decreased 2,682 to 118,312. SHFE 1506 zinc contract prices are expected to rise further in the near term.

#0 zinc prices were between RMB 16,410-16,460/mt, RMB 140-90/mt below SHFE 1506 zinc contract prices. #1 zinc was traded between RMB 16,330-16,350/mt. SHFE 1506 zinc contract prices fluctuated around RMB 16,550/mt after opening, up RMB 200/mt, with spot discounts expanding RMB 40/mt. Smelters sold normally, leading to healthy supply. Cargo holders also increased supply, allowing spot discounts to widen. Downstream buying interest was low, and traders were also unwilling to purchase, with overall transactions quiet. Shuangyan #0 zinc prices were RMB 16,450-16,460/mt, RMB 100-90/mt below SHFE 1506 zinc contract prices. Yuguang #0 zinc prices were RMB 16,440-16,450/mt, RMB 110-100/mt below SHFE 1506 zinc contract prices. Qinxin, Feilong and Qilin #0 zinc prices were RMB 16,410-16,430/mt, with spot discounts of RMB 140-130/mt against SHFE 1506 zinc contract prices. SMC #0 zinc prices were RMB 16,400-16,410/mt, with spot discounts of RMB 150/mt against SHFE 1506 zinc contract prices. KZ and AZ #0 zinc prices were RMB 16,370-16,380/mt, with spot discounts of RMB 180-170/mt against SHFE 1506 zinc contract prices. Indian and Namibia’s #0 zinc prices were RMB 16,320-16,330/mt, with spot discounts of RMB 230-220/mt against SHFE 1506 zinc contract prices. SHFE 1506 zinc contract prices climbed to RMB 16,560/mt in the afternoon, with spot discounts widening RMB 10/mt, with transactions quiet.