SHANGHAI, Jun. 24 (SMM) - SHFE 1310 zinc contract prices opened lower at RMB 14,315/mt, dragged down by LME zinc prices overnight. Due to strong selling pressure, SHFE zinc prices dipped to RMB 14,255/mt. But as shorts left the market after profit-taking and since some bargain hunters entered the market and due to rebounding LME zinc prices, SHFE zinc prices soared and touched RMB 14,470/mt, finally closing at RMB 14,440/mt, up RMB 30/mt or 0.21%. Trading volumes increased by 19,490 lots, to 88,146 lots, and total positions increased by 14,446 lots to 139,202 lots.
#0 zinc prices were between RMB 14,450-14,490/mt, with spot premiums between RMB 50-90/mt against SHFE 1310 zinc contract prices. #1 zinc prices were between RMB 14,440-14,450/mt. SHFE zinc prices dipped before rallying today. Cargo holders’ confidence grew as SHFE zinc prices rebounded, and bargain hunters entered the market, pushing up spot premiums of #0 zinc against SHFE 1310 zinc contract prices to RMB 100/mt. During the second trading session, SHFE zinc prices fluctuated at high levels, but spot premiums of #0 zinc narrowed to RMB 50-90/mt due to sell-offs. Smelters were moving goods actively due to cash flow problems, but as downstream buyers remain cautious, overall transactions were muted. SHFE zinc prices continued to strengthen in the afternoon, and #0 zinc prices rose to RMB 14,500-14,510/mt, with spot premiums between RMB 60-80/mt against SHFE 1310 zinc contract prices.