SHANGHAI, Jul. 17 (SMM) - LME zinc prices overnight closed the day with declines, and SHFE 1310 zinc contract prices opened slightly lower at RMB 14,680/mt. SHFE zinc prices surged before falling back to RMB 14,660/mt as a large number of shorts entered the market, but edged up during the second session due to rising LME zinc prices and A-shares, moving between RMB 14,670-14,690/mt. Due to news that related high-speed railway investment document was submitted and is expected to be approved soon, SHFE zinc prices were pushed up to RMB 14730/mt, and finally closed at RMB 14725/mt, up RMB 30/mt, up 0.2%. Trading volumes decreased by 5,484 lots, to 27,710 lots, and total positions decreased by 2,268 lots, to 148,788 lots.
#0 zinc prices were between RMB 14,730-14,770/mt, with spot premiums of RMB 70-100/mt against SHFE 1310 zinc contract prices. #1 zinc prices were between RMB 14,710-14,720/mt, with imported #0 zinc prices firm around RMB 14,750/mt. Smelters continued to sell goods, and spot premiums expanded, with some arbitragers releasing goods. More downstream enterprises conducted maintenance, with demand for zinc shrinking, and leaving transactions muted. SHFE zinc prices edged up in the afternoon, and #0 zinc prices were between RMB 14,750-14,770/mt, with spot premiums of RMB 70-80/mt against SHFE 1310 zinc contract prices.