SHANGHAI, Aug. 19 (SMM) – Reverse repurchasing by the PBOC executed yesterday touch an 18-month high, but failed to help ease market concerns. China’s A-share market plunged over 6%, causing selloffs. Rail freight volumes in July were down 10.9% YoY, and fell 10.1% in the first half of this year, fueling market concerns over domestic demand.
LME zinc prices opened at USD 1,814/mt, then tumbled to USD 1,800/mt and closed at USD 1,766.5/mt, down USD 47.5/mt or 2.62%. Trading volumes increased 4,394 to 10,306 lots, and total positions fell 6,250 to 314,233. LME zinc inventories jumped 40,000 to 500,000 mt.
SHFE 1510 zinc contract prices opened at RMB 14,600/mt Tuesday evening, and closed at RMB 14,610/mt, down RMB 180/mt or 1.22%. Total trading volumes were up 8,938 to 49,784 lots, and total positions decreased 1,752 to 145,098.
LME zinc prices should fluctuate between USD 1,755-1,785/mt today, and SHFE 1510 zinc contract prices will hover between RMB 14,500-14,700/mt, with spot premiums of RMB 220-250/mt.
