SHANGHAI, Jun. 5 (SMM) –SHFE 1508 zinc contract prices opened at RMB 16,400/mt Wednesday evening, then hovered around RMB 16,400/mt, and closed at RMB 16,380/mt, down RMB 105/mt or 0.64%. Trading volumes decreased 16,624 to 48,086 lots, and total positions dropped 1,594 to 136,920. SHFE 1508 zinc contract prices opened at RMB 16,375/mt on Thursday, then inched down and dipped to an intraday low of RMB 16,285/mt as a large number of longs left the market. Later the day, SHFE 1508 zinc contract prices found some support from bargain hunters but met resistance at the 60-day moving average, and closed at RMB 16,405/mt, down RMB 80/mt or 0.49%. Trading volumes decreased 53,938 to 126,954 lots, and total positions fell 4,762 to 133,752. SHFE 1508 zinc contract prices are expected to fall further this evening.
#0 zinc prices were between RMB 16,290-16,320/mt, RMB 50-30/mt below SHFE 1508 zinc contract prices and RMB 70-50/mt below SHFE 1507 zinc contract prices. #1 zinc prices were RMB 16,260-16,280/mt. SHFE 1508 zinc contract prices fell RMB 150/mt, causing spot discounts to narrow RMB 50/mt. Some smelters held back goods on continuously falling zinc prices. When combined premiums on zinc prices in Guangdong against Shanghai prices, smelters in South China reduced supply to Shanghai. Traders mostly held onto their goods on expectations of spot premiums, allowing spot discounts to contract. Traders and downstream buyers purchased modestly at lower prices, leaving overall transactions quiet. SHFE 1508 zinc contract prices rose RMB 40/mt in the afternoon, with spot discounts of #0 zinc between RMB 80-50/mt and trading quiet.