SHANGHAI, Jun. 4 (SMM) -- Last Friday, SHFE 1209 zinc contract prices opened at RMB 14,790/mt and dipped to RMB 14,735/mt in the morning session due to China’s shrinking PMI and since the US dollar index surged to 83.3. As the Shanghai Composite Index rose, SHFE 1209 zinc contract prices rebounded to RMB 14,870/mt, but then fell to fluctuate between RMB 14,810-14,840/mt. In the afternoon, SHFE three-month zinc contract prices were dragged down by falling Shanghai Composite Index, and finally closed at RMB 14,770/mt, down RMB 15/mt or 0.1%. Trading volumes decreased by 36,940 lots to 69,608 lots, and total position increased by 4,086 lots to 146,000 lots. Trading volumes increased by 24,812 lots to 104,626 lots, and total position increased by 4,820 lots to 175,950 lots.
In domestic spot markets, #0 zinc was traded between RMB 14,730-14,750/mt in the morning session. As SHFE zinc prices rose, discounts were between RMB 50-80/mt, with traded prices between RMB 14,750-14,770/mt. #1 zinc prices were between RMB 14,700-14,720/mt. Traders purchased at lower prices, but turned cautious as prices rose, and smelters were holding goods, while downstream buying interest was low.