Shanghai, Jul. 12 (SMM) – SHFE zinc market opened up by RMB 195/mt at RMB 14,705/mt on Thursday as LME zinc market overnight closed higher. After a high open, SHFE zinc market generally fluctuated at RMB 14,700/mt. As the SSE Composite index surged all the way, a gain of 3.23%, and LME zinc advanced, SHFE zinc market strengthened in the afternoon session, briefly reaching RMB 14,880/mt. Finally, SHFE zinc market surrendered some gains to close at RMB 14,785/mt, up RMB 225/mt or 1.55%. Transactions were up 53,218 lots to 1,034,444 lots, while positions were down 4,446 lots to 151,646 lots. On Thursday, SHFE zinc market staged strong performance by breaking above daily moving averages.
In the spot market, premiums of #0 zinc against SHFE 1310 zinc contract prices were down slightly to RMB 60-80/mt, with mainstream deals between RMB 14,840-14,870/mt. #1 traded at RMB 14,710/mt. Major smelters’ enthusiasm in sales improved with price rallies, increasing market supply. Some traders entered the market due to higher SHFE zinc prices and narrowing premiums, but cargo-holders held prices firm. Besides, downstream producers were still wary of the purchasing. As a result, overall trading was thin. In the afternoon business, spot zinc prices surged, with #0 traded between RMB 14,840-14,870/mt, and its premiums over SHFE three-month zinc prices between RMB 60-70/mt. No improvement was reported in market transactions.