SMM Zinc Market Daily Review (2015-5-4)

SHANGHAI, May 5 (SMM) – SHFE 1507 zinc contract prices started at RMB 17,130/mt on Monday and briefly dipped to RMB 17,070/mt. Later, the prices fluctuated up to RMB 17,240/mt and closed at RMB 17,210/mt, up RMB 220/mt. Trading volumes grew 8,656 lots to 170,304 lots, and positions increased 7,858 to 162,700.

#0 zinc prices were between RMB 17,030-17,070/mt, RMB 160-110/mt below SHFE 1506 zinc contract prices. #1 zinc was traded between RMB 16,980-16,990/mt. SHFE 1507 zinc contract prices climbed to RMB 17,190/mt, and spot #0 zinc prices rose in response, with spot discounts expanding to RMB 160-110/mt. Smelters sold actively above RMB 17,000/mt, but traders mostly held back goods due to the lack of arbitrage opportunity. When combined with the entry of bargain hunters, supply decreased, keeping spot zinc prices firm. Downstream buyers purchased cautiously at high zinc prices, leaving transactions muted. Shuangyan #0 zinc prices were RMB 17,050-17,070/mt, RMB 120-110/mt below SHFE 1507 zinc contract prices. Yuguang and Huize #0 zinc prices were RMB 17,040-17,060/mt, RMB 140-120/mt below SHFE 1507 zinc contract prices. Qilin, Qinxin and Jiulong #0 zinc prices were RMB 17,030-17,050/mt, with spot discounts of RMB 160-140/mt against SHFE 1507 zinc contract prices. Baohui and Tongguan #0 zinc prices were RMB 17,000-17,020/mt, with spot discounts of RMB 200-170/mt against SHFE 1507 zinc contract prices. SMC and AZ #0 zinc prices were RMB 17,020-17,030/mt, with spot discounts of RMB 160-150/mt against SHFE 1507 zinc contract prices. Indian and Namibia’s #0 zinc prices were RMB 17,000-17,020/mt, with spot discounts of RMB 200-170/mt against SHFE 1507 zinc contract prices.