SHANGHAI, Jul. 29 (SMM) - SHFE 1310 zinc contract prices opened slight lower at RMB 14,650/mt, and then hovered around the 10-day moving average. LME zinc prices continued to weaken, which distressed market sentiment. As a large number of longs closed positions in the afternoon, SHFE zinc prices inched down, finding support at RMB 14,600/mt, and closing at RMB 14,605/mt, down RMB 60/mt or 0.41%. Trading volumes of SHFE 1310 zinc contract decreased by 7,968 lots, to 12,876 lots, and total positions decreased by 3,966 lots, to 115,566 lots. Total trading volumes of SHFE 1311 zinc contract decreased by 3,364 lots, to 36,182 lots, and total positions increased by 786 lots, to 104,162 lots. SHFE 1311 zinc contract became more actively traded.
#0 zinc prices were between RMB 14,740-14,770/mt, with spot premiums of RMB 90-120/mt against SHFE 1310 zinc contract prices. #1 zinc prices were between RMB 14,710-14,730/mt. As SHFE zinc prices edged up in the morning, spot premiums expanded. Smelters were actively moving goods, but spot supply tightness allowed cargo holders to hold prices firm. Traders stood on the sidelines due to month-end factor, purchasing at lower prices, and downstream buyers purchased modestly ahead of the weekend. Transactions did not improve. SHFE zinc prices fell in the afternoon, and #0 zinc prices were between RMB 14,730-14,740/mt, with spot premiums of RMB 120-130/mt against SHFE 1310 zinc contract prices.