SHANGHAI, Apr. 24 (SMM) - SHFE 1307 zinc contracts prices opened at RMB 14,540/mt on Tuesday, touching RMB 14,615/mt following LME zinc prices, but then falling back to RMB 145,20/mt. HSBC’s April PMI for China was only 50.5, showing the path to recovery of China’s manufacturing is still marked with twist and turns. With growing investor concerns, the Shanghai Composite Index plummeted and closed with declines of 2.57%, dragging down SHFE 1307 zinc contract prices to USD 14,415/mt, but gaining back some previous losses, and finally closing at RMB 14,515/mt, down RMB 30/mt. Total positions decreased by 2,564 lots to 125,410 lots.
SHFE 1307 zinc contract prices soared briefly but then inched down. Spot discounts of #0 zinc against SHFE 1307 zinc contract prices narrowed from RMB 70-90/mt, to RMB 50-60/mt, with traded prices between RMB 14,460-14,490/mt. #1 zinc prices were between RMB 14,430-14,440/mt, with supply remaining tight. Smelters were still holding back goods, while downstream buyers began to replenish stocks modestly, with overall transactions muted. SHFE zinc prices stopped falling in the afternoon, and #0 zinc prices edged down to RMB 14,440-14,450/mt, but the market did not improve.