SHANGHAI, Jun. 25 (SMM) --  Last Thursday, SHFE 1209 zinc contract prices opened lower at RMB 14,770/mt, fluctuating between RMB 14,720-14,780/mt after opening. As the US dollar index rose slightly at noon, and since HSBC released China’s PMI for June was 48.1, compared to 48.4 the previous month, SHFE 1209 zinc contract prices plummeted slightly. In the afternoon, SHFE 1209 zinc contract prices fluctuated narrowly due to the weak Shanghai Composite Index, and fell further to close at RMB 14,630/mt, down RMB 285/mt or 1.91%. Trading volumes increased by 12,878 lots to 42,548 lots, and total position decreased by 6,552 lots to 140,622 lots. SHFE 1210 zinc contract became the most actively traded, with total position increasing by 32,978 lots to 141,912 lots.

In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices narrowed to RMB 70/mt, with traded prices between RMB 14,660-14,680/mt. As SHFE zinc prices plummeted at noon, discounts of #0 zinc narrowed to RMB 60/mt, with traded prices around RMB 14,650/mt. #1 zinc was quoted between RMB 14,630-14,650/mt. Smelters were holding goods as zinc prices fell, and traders also reduced  goods supplies. But spot transactions improved compared to the previous day, and downstream buyers purchased at the last trading day prior to the holiday.