SHANGHAI, Jun. 23 (SMM) – SHFE 1408 zinc contract prices opened at RMB 15,600/mt last Thursday evening, then touched as high as RMB 15,645/mt, and closing at RMB 15,640/mt, up RMB 115/mt or 0.74%. SHFE 1409 zinc contracts became the most actively traded contracts last Friday, with total positions increasing significantly, pushed up by rising LME zinc prices. SHFE 1409 zinc contract prices touched an intraday high of RMB 15,815/mt, then fluctuated between RMB 15,710-15,800/mt, and closed at RMB 15,765/mt, up RMB 205/mt or 1.32%. Trading volumes increased by 63,572 lots, to 95,574 lots, and total positions increased by 27,130 lots, to 119,822 lots.
#0 zinc prices were between RMB 15,550-15,590/mt, with spot discounts of RMB 140-100/mt against SHFE 1408 zinc contract prices. #1 zinc prices were between RMB 14,480-15,500/mt. Shuangyan and Huize branded #0 prices were between RMB 15,570-15,590/mt, and RMB 15,550-15,570/mt for Yuguang branded #0 zinc and RMB 15,520-15,530/mt for Baohui branded #0 zinc. AZ branded #0 zinc prices were between RMB 15,500-15,530/mt, and RMB 15,480-15,490/mt for other imported zinc. SHFE 1408 zinc contract prices climbed after opening, causing spot discounts to expand to RMB 150/mt, and attracted some bargain hunters to enter the market. SHFE 1408 zinc contract prices resisted increases at noon, but spot prices held firm, with spot discounts narrowing to RMB 90-140/mt, and allowing spot trading to decrease. Smelters were actively selling, with most supply imported zinc. Traders were holding back goods due to expanding spot discounts, while downstream buying interest improved, causing trading to grow. SHFE 1408 zinc contract prices rose slightly in the afternoon, but registered #0 zinc prices were around RMB 15,640/mt.