SHANGHAI, Jun. 17 (SMM) - SHFE 1309 zinc contract prices opened RMB 65/mt lower at RMB 14,515/mt, as LME zinc prices overnight plummeted by 1.22%. As large numbers of shorts rushed to the market, SHFE 1309 zinc contract prices once dipped to RMB 14,480/mt. During the second session, SHFE zinc prices rebounded above moving averages, and then struggled around RMB 14,520/mt, and finally closing at RMB 14,525/mt, down RMB 55/mt or 0.38%. Trading volumes of SHFE 1309 zinc contracts decreased by 18,776 lots, to 43,296 lots, and positions increased by 4,364 lots to 121,444 lots. Trading volumes decreased by 31,074 lots, to 102,874 lots, and total positions increased by 11,798 lots to 304,562 lots.
SHFE zinc prices opened lower today and later fluctuated narrowly. Spot premiums of #0 zinc expanded to RMB 100-130/mt against SHFE 1309 zinc contract prices, with traded prices between RMB 14,620-14,660/mt. #1 zinc prices were around RMB 14,600/mt. Traded prices in Guangdong were close to SHFE zinc prices, but spot premiums in Shanghai exceeded RMB 100/mt due to supply tightness. Traders stood on the sidelines due to the lack of arbitrage opportunity, and downstream buying interest was low, keeping transactions quiet.