SHANGHAI, Oct. 30 (SMM) - SHFE 1401 zinc contract prices opened higher at RMB 15,105/mt, but gains fell short of market expectations, and then hovered between RMB 15,070-15,100/mt. In the afternoon, as the Shanghai Composite Index dropped then stabilized, SHFE zinc prices stopped falling and closed at RMB 15,145/mt, up RMB 75/mt. Trading volumes increased by 5,666 lots, to 53,706 lots, and total positions decreased by 1,502 lots, to 131,000 lots.
#0 zinc prices were between RMB 15,090-15,160/mt, with spot premiums between RMB 0-70/mt against SHFE 1401 zinc contract prices, down RMB 10-40/mt from the previous day due to sluggish demand. #1 zinc prices were around RMB 15,040-15,060/mt. Imported SMC and KZ #0 zinc prices were around RMB 15,100/mt. SHFE 1401 zinc contract prices opened high but moved lower, hovering around RMB 15,110/mt. Shuangyan branded #0 zinc prices were between RMB 15,170-15,180/mt, but as spot prices fell along with LME zinc prices later the day, Shuangyan branded #0 zinc prices inched down to RMB 15,150-15,160/mt, with Yuguang branded zinc prices around RMB 15,140/mt and sales limited. Month-end cash flow problems undermined downstream buying interest, with overall trading muted.