SHANGHAI, Jun. 3 (SMM) - SHFE 1309 zinc contract prices opened higher at RMB 14,780/mt, boosting by LME zinc prices overnight, and touching RMB 14,845/mt as longs rushed to the market, fluctuating between RMB 14,780-14,795/mt. Due to the weakening domestic stocks markets and LME zinc prices and pessimistic China’s official PMI, longs left the market after closing positions, pushing down SHFE zinc prices to RMB 14,745-14,765/mt, finally closing at RMB 14,760/mt, up RMB 110/mt or 0.79%. Trading volumes decreased by 60,714 lots, to 88,426 lots, and total positions decreased by 8 lots to 170,328 lots.
Spot premiums of #0 zinc against SHFE 1309 zinc contract prices were RMB -40-30/mt, with traded prices between RMB 14,740-14,800/mt. #1 zinc prices were between RMB 14,740-14,750/mt. Cargo holders moved goods actively due to soaring zinc prices, but supply of Shuangyan brand remained tight, with prices between RMB 14,780-14,800/mt. Supply of Baohui, Shuikoushan and Qinxin brands were recently ample, with prices between RMB 14,740-14,750/mt. Downstream buying interest was low, keeping overall transactions muted. In the afternoon, SHFE zinc prices fluctuated narrowly, with price of #0 zinc RMB 10/mt below or RMB 40/mt higher than SHFE 1309 zinc contract prices, and traded prices between RMB 14,740-14,790/mt.