SHANGHAI, Jun. 19 (SMM) – SHFE 1408 zinc contract prices opened at RMB 15,545/mt on Wednesday, and touched RMB 15,590/mt with SHFE copper prices, but meeting resistance at RMB 15,600/mt now that positive effects from deposit reserve ratio cut by the State Council has been absorbed and since domestic stocks had been plummeting for two consecutive days. SHFE 1408 zinc contract prices rolled back early gains and closed at RMB 15,500/mt, up RMB 80/mt or 0.52%. Trading volumes increased by 20,174 lots, to 55,380 lots, and total positions decreased by 3,152 lots, to 104,416 lots.
#0 zinc prices were between RMB 15,420-15,450/mt, with spot discounts of RMB 80-100/mt against SHFE 1408 zinc contract prices. #1 zinc prices were between RMB 15,360-15,370/mt. Shuangyan branded #0 prices were between RMB 15,440-15,450/mt, and RMB 15,420-15,430/mt for Yuguang and Feilong branded #0 zinc and RMB 15,380-15,390/mt for AZ branded #0 zinc. Prices for other imported brands were between RMB 15,360-15,370/mt. SHFE 1408 zinc contract prices touched RMB 15,585/mt before falling during the first trading session, but spot zinc price gains were not as strong as SHFE zinc prices, causing spot discounts to expand to RMB 100-120/mt. This gave incentives to trades moving goods, causing transactions to improve. During the second trading session, SHFE 1408 zinc contract prices stabilized between RMB 15,510-15,540/mt, with spot discounts narrowing and keeping market players on the sidelines. As zinc prices rose, some smelters began to hold back goods. But ample supply of imported zinc dragged down #1 and undeliverable brands of #0 zinc prices, with downstream buying interest low. SHFE 1408 zinc contract prices fell in the afternoon to RMB 15,490/mt, with spot discounts narrowing to RMB 60-90/mt, and #0 zinc prices between RMB 15,400-15,430/mt.