SHANGHAI, Jun. 14 (SMM) - SHFE 1309 zinc contract prices opened RMB 290/mt lower at RMB 14,540/mt, and advanced as some bargain hunters entered the market. But the Shanghai Composite Index plunged 2.83%, falling below 2200, hitting a record low since mid-December last year, depressing market sentiment. In this context, SHFE 1309 zinc contract prices encountered resistance at the 20-day moving average, touching RMB 14,650/mt before fluctuating between RMB 14,570-14,605/mt, and finally closing at RMB 14,570/mt, down RMB 260/mt or 1.75%.
Trading volumes of SHFE 1309 zinc contracts increased by 20,890 lots, to 62,072 lots, and positions decreased by 2,370 lots to 117,080 lots. Trading volumes increased by 59,264 lots, to 133,946 lots, and total positions increased by 5,804 lots to 292,764 lots.
SHFE zinc prices opened lower today and later fluctuated narrowly. Spot premiums of #0 zinc expanded to RMB 20/mt against SHFE 1309 zinc contract prices, with traded prices between RMB 14,660-14,700/mt. #1 zinc prices were between RMB 146,30-14,640/mt. Cargo holders were holding back goods and holding prices firm as zinc prices plunged, pushing up spot premiums. Some arbitrage traders released spot goods, while downstream buyers purchased modestly, keeping transactions quiet. In the afternoon, SHFE zinc prices were weighed down below moving averages, but spot prices remained firm, with spot premiums of #0 zinc against SHFE 1309 zinc contract prices between RMB 70-110/mt, and with traded prices between RMB 14,650-14,700/mt.