SHANGHAI, Jun. 20 (SMM) - SHFE 1309 zinc contract prices opened at RMB 14,540/mt. The market remained cautious before the US Federal Reserve’s policy meeting is held. HSBC will release China’s June manufacturing PMI this Thursday, which is pessimistic given the sluggish manufacturing in China and regulations to the property market. Beside, the Shanghai Composite Index opened low and moved lower, dipping to 2115.79, a record low since mid-December last year, depressing market sentiment. In this context, SHFE zinc prices fluctuated between RMB 14,510-14,525/mt, and rallied in the afternoon, finally closing at RMB 14,530/mt, down RMB 10/mt or 0.07%.
Trading volumes of SHFE 1309 zinc contracts decreased by 10,160 lots, to 16,104 lots, and positions decreased by 2,506 lots to 116,608 lots. Trading volumes decreased by 16,916 lots, to 56,184 lots, and total positions increased by 4,166 lots to 309,618 lots.
SHFE zinc prices fluctuated at low levels today. #0 zinc prices were between RMB 14,620-14,640/mt, with spot premiums between RMB 100-120/mt against SHFE 1309 zinc contract prices. #1 zinc prices were between RMB 14,600-14,610/mt. Some smelters increased goods supply for long-term orders as the settlement date nears, and arbitrage traders were also moving goods actively as delivery date neared. Traders operated cautiously, and downstream buyers were pessimistic towards price trends and purchasing on an as-needed basis, leading to spot supply surplus and causing transactions to mute. SHFE zinc prices dipped before rallied, with #0 zinc prices between RMB 14,620-14,640/mt, and spot premiums between RMB 100-120/mt against SHFE 1309 zinc contract prices.