SHANGHAI, Jul. 19 (SMM) - SHFE 1310 zinc contract prices opened lower at RMB 14,555/mt, dragged down by LME zinc prices overnight, falling below RMB 14,600/mt. SHFE zinc prices struggled around RMB 14,540/mt in the morning session, as LME zinc prices inched down to USD 1,860/mt at noon, SHFE zinc prices fell to test the 20-day moving average in the afternoon, dipping to RMB 14,510/mt and finally closing at RMB 14,520/mt, down RMB 145/mt or 0.99%. Trading volumes decreased by 3,066 lots, to 36,368 lots, and total positions decreased by 3,708 lots, to 140,850 lots.
#0 zinc prices were between RMB 14,640-14,660/mt, with spot premiums of RMB 90-110/mt against SHFE 1310 zinc contract prices. #1 zinc prices were between RMB 14,600-14,610/mt. SHFE zinc prices opened low and fluctuated in a narrow range. As spot zinc prices plunged by around RMB 100/mt, smelters were distressed; some arbitrage traders released goods modestly due to expanding premiums, and traders lacked buying interest. Downstream buyers purchased modestly at lower prices, leaving transactions muted. SHFE zinc prices sank in the afternoon, and #0 zinc prices were between RMB 14,630-14,650/mt, with spot premiums of RMB 110-120/mt against SHFE 1310 zinc contract prices.