SHANGHAI, Jun. 5 (SMM) - SHFE 1309 zinc contract prices opened higher at RMB 14,920/mt, boosted by LME zinc prices overnight. The Shanghai Composite Index opened low but moved lower, plummeting by 1.17%, affecting the zinc market. Selling pressure also pushed SHFE zinc prices down below the 60-day moving average, closing at RMB 14,790/mt, down RMB 65/mt or 0.44%. Trading volumes of SHFE 1309 zinc contracts increased by 16,984 lots, to 92,266 lots, and positions decreased by 23,670 lots to 144,532 lots. Trading volumes increased by 33,372 lots, to 159,398 lots, and positions decreased by 37,690 lots to 334,260 lots. Zinc prices lacked upward impetus and encounter resistance at RMB 15,000/mt, with investors cautious.
SHFE zinc prices soared initially but later fell back today. #0 zinc prices ranged from RMB 20/mt below to RMB 20/mt above SHFE 1309 zinc contract prices, with traded prices between RMB 14,840-14,880/mt. #1 zinc prices were between RMB 14,800-14,810/mt. During the second session, SHFE zinc prices dropped further, and cargo holders held back goods and maintained prices firm, while downstream buying interest improved, but transactions were muted. #0 zinc prices ranged from RMB 20/mt below to RMB 20/mt above SHFE 1309 zinc contract prices, with traded prices between RMB 14,830-14,860/mt. As downstream buying interest was generally low, overall transactions were muted.