SHANGHAI, Jun. 6 (SMM) - SHFE 1309 zinc contract prices opened higher at RMB 14,870/mt, boosted by LME zinc prices overnight. Both the Shanghai Composite Index and LME zinc prices dipped before rallying, so SHFE zinc prices inched down in the morning session, dipping to RMB 14,840/mt, and finding support at the 60-day moving average. In the afternoon, SHFE zinc prices advanced, touching RMB 14,930/mt, closing at RMB 14,915/mt, up RMB 65/mt or 0.44%. Trading volumes of SHFE 1309 zinc contracts decreased by 19,314 lots, to 72,952 lots, and positions decreased by 11,304 lots to 133,228 lots. Trading volumes decreased by 25,784 lots, to 133,614 lots, and total positions decreased by 24,008 lots to 310,252 lots. The SHFE/LME zinc price ratio slid slightly due to weaker domestic zinc prices, causing investors to close positions, with 22.39% of shorts leaving the market. Market players were cautious prior to the release of US ADP job data.
SHFE zinc prices opened slightly higher today but later fell. #0 zinc prices ranged from RMB 10/mt below to RMB 10/mt above SHFE 1309 zinc contract prices, with traded prices between RMB 14,840-14,880/mt. #1 zinc prices were between RMB 14,800-14,830/mt. Market was cautious, with long momentum weakening and large numbers of investors closing positions. Profit seekers entered the market when prices rose, and downstream buying replenished stocks modestly, but overall transactions remained quiet due to pessimism and weakening SHFE zinc prices. in the afternoon, SHFE zinc prices gained momentum, with spot discounts of #0 zinc against SHFE 1309 zinc contract prices between RMB 20-0/mt, with traded prices between RMB 14,860-14,890/mt.