About Zinc Futures
Currently, all internationalized products opened to QFI for trade are of low volatility and open ratio interest. These restrictions imposed take into consideration both the domestic impact of trade and the expected foreign volume of trade.
One of these released products includes Zinc Futures by the Shanghai Futures Exchange. Zinc is one of the few product categories that has recorded improvements together with a few other non-ferrous metals such as lead, nickel, and tin.
In 2017, internationaltin.org recorded that from the perspective of trading volume that the nonferrous metal futures in China are ranked as follows:
Zinc> Nickel> Aluminum> Copper> Lead> Tin.
Given the significant list of information about zinc and its use in the production of brass, bronze, and other alloys, this article will feature the contract specifications of zinc and exclusive research information by Orient Futures Shanghai.
Zinc Futures Contract
The Zinc Futures Contract has the following specifications:
The contract size for Zinc Futures Contract has a minimum price fluctuation of 5 Yuan/metric ton with a minimum trading margin of 5% of the contract value.
The last trading day of the contract month is the 15th day. (Postponed accordingly if it is a legal holiday in China or a separate adjustment if it falls in the Spring Festival month or another month specifically designated by the Exchange).
Contract months are for all 12 months.
Trading Hours are from Monday to Friday, at these trading hours:
9:00 am – 11:30 am / 1:30 pm – 3:00 pm (Beijing time)
Rapeseed Oil Futures symbol: ZN
Market Research
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Orient Futures - 25.9.2022
Underpinned by lower inventories and tight spot supply, SHFE zinc remained resilient in September. It is expected that the trading focus will go back to the domestic supply and demand fundamentals in the short term.
The SHFE most traded zinc contract expired in October 2022, the contract settled at 24,970 yuan/mt with a gain of 0.77% from the previous week. However, the trading volume of the zinc futures main contract declined by 9.06% to 786,149 lots amid a total turnover of 97,08 billion yuan. Both the short and long were wrestling in September’s trade cycle and the total interest inched up to 93,800 lots.
Some key factors of interest that continue to affect markets in November include LME’s zinc inventory, which had shrunk to 59,500 tons in that month. Otherwise, Europe’s energy crisis is expected to re-emerge into the focus of the market while the uncertainty of the Russia-Ukraine conflict adds to the myriad of factors.
Likewise, the decline of SHFE inventories also supported domestic spot zinc prices. As of September 23, the zinc stocks had dropped 30,600mt within the month.
Research Report by Shanghai Orient Futures - 03.11.2022
On the topic of non-ferrous metals and zinc, low inventory and weak demand expectations continue to persist.
However, supply bottlenecks and demand improvement expectations may support the overall valuation of non-ferrous metals to improve in the next quarter.
Research Report by Mysteel – 17.11.2022
Apart from research by Orient Futures Shanghai, Mysteel reports that in October 2022, the prices of zinc rose first and then fell. As of October 26, the price of the Shanghai Futures Exchange (SHFE) Zinc’s main contract was Yuan 24,290/tonne, up 2.35% from the price of Yuan 23,720/tonne on October 10.
Apply QFI through Orient Futures Singapore
Under the QFI scheme, participants can gain access to 7 approved products in Shanghai Futures Exchange.
Trading through the QFI Scheme allows traders to hedge on Index Futures, Index Options, and trade Commodity Futures and Options. Orient Futures Singapore is a direct Overseas intermediary of Shanghai International Energy Exchange, Dalian Commodity Exchange, and Zhengzhou Commodity Exchange, while Shanghai Orient Futures is a direct local futures company in China.
Shanghai Orient Futures supports both FIX connections and co-location services and ranks No.1 in the market in trading volume.
To find out more about QFI application, contact us here:
Market News
World bank has reported that for Europe, the surge in energy costs has led to rising concerns around the supply of aluminum and zinc due to the energy-intensive nature of smelting. Aluminum prices surpassed $4,000/mt in early March… while Zinc prices reached a 15-year high of $4,500/mt in mid-April.
Likewise, AMT, which is a metal derivatives broker and dealer also reports that zinc prices are off highs as global growth headwinds threaten the zinc demand outlook and broader risk appetite. However, ex-China inventory scarcity, European smelter curbs due to high energy prices, and significant global deficit projections for 2022 should help zinc weather the macro-storm.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG).
We provide premium customer service at an affordable cost to all our clients. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
