The paper focuses on the formation of contractant shear zones in initially loose cohesionless granular materials subject usually to continuous densification. For a simulation of the mechanical behaviour of a granular material during monotonous deformation paths, a micro-polar hypoplastic constitutive model was used which takes into account particle rotations, curvatures, non-symmetric stresses, couple stresses and the mean grain diameter as a characteristic length. The FE investigations of shear localization were carried out with initially very loose quartz sand during four different rate boundary value problems: shearing of an infinite layer between two very rough walls, plane strain compression under constant lateral pressure, biaxial compression with rigid and deformable boundaries and passive earth pressure on a horizontally translating retaining wall. The calculations were carried out with a simple random distribution of the initial void ratio under conditions of large deformations and curvatures.