SHANGHAI, Jun. 28 (SMM) - SHFE 1310 zinc contract prices opened flat at RMB 14,370/mt. China's scale-efficiency industry enterprises realized RMB 470.55 billion in profits in May, up 15.5% YoY, inspiring the market. LME zinc prices strengthened and challenged USD 1,850/mt. SHFE zinc prices were pushed up by large numbers of longs, touching RMB 14,440/mt, and finally closing at RMB 14,420/mt, up RMB 50/mt or 0.35%. Trading volumes decreased by 23,292 lots, to 53,890 lots, and total positions increased by 1,258 lots to 159,386 lots.
#0 zinc prices were between RMB 14,470-14,500/mt, with spot premiums between RMB 80-100/mt against SHFE 1310 zinc contract prices. #1 zinc prices were between RMB 14,440-14,450/mt, with imported #0 zinc prices between RMB 14,700-14,800/mt. Cargo holders were actively moving goods as SHFE zinc prices opened low but moved higher, and smelters were also aggressively selling goods due to cash flow problems, while downstream buyers purchased on an as-needed basis, keeping transactions quiet. Trading inventories in Shanghai were removed by 3,000 mt/day. SHFE zinc prices continued to climb in the afternoon, and #0 zinc prices were between RMB 14,490-14,500/mt, with spot premiums narrowing to RMB 70-90/mt against SHFE 1310 zinc contract prices.