SHANGHAI, Jun. 21 (SMM) – SHFE 1209 zinc contract price opened at RMB 14,910/mt Wednesday and rallied to RMB 14,965/mt due to positive news overnight, but met resistance to edge down later to RMB 14,900-14,930/mt. At midday, SHFE zinc prices dipped to a low of RMB 14,880/mt due to falling domestic stock markets. However, SHFE zinc prices regained some losses after opening in the afternoon and fluctuated between RMB 14,910-14,940/mt, with prices ending up RMB 25/mt to RMB 14,930/mt, a growth of 0.17%. Trading volumes fell by 12,424 lots to 29,670 lots, while positions were down 5,078 lots to 147,174 lots. SHFE 1210 zinc contract were actively traded with positions up 3,612 lots to 108,934 lots.
In China’s domestic spot markets, traded prices for #0 lead were mainly between RMB 14,810-14,830/mt in the morning, with discounts of RMB 100-120/mt over the most active SHFE zinc contract price, but fell to RMB 14,800/mt with spot discounts narrowing to RMB 90/mt. Quotations for #1 zinc were RMB 14,770/mt. Market was attentive to whether the Fed will decide to implement QE3 measures on the upcoming meeting. Cargo holders were eager to move goods, but downstream buyers showed no intention of massive replenishments, leaving trading unimproved.