SHANGHAI, Jul. 29 (SMM) – SHFE 1410 zinc contract prices opened at RMB 16,850/mt overnight then hovered weakly, slumping to RMB 16,680/mt due to strong short momentum, and closing at RMB 16,795/mt, down RMB 105/mt or 0.62%. Trading volumes decreased by 85,504 to 345,788 lots, and total positions increased by 14,510 to 292,190 lots.
SHFE 1410 zinc contract prices opened at RMB 16,760/mt on Friday, and inched down to RMB 16,720/mt. but due to positive China’s official PMI in July, LME zinc prices rose, pushing up SHFE 1410 zinc contract prices to touch an intraday high of RMB 16,900/mt. But since a large number of investors left the market after profit-taking, SHFE 1410 zinc contract prices inched down and closed at RMB 16,815/mt, down RMB 85/mt or 0.5%. Trading volumes decreased by 40,968 lots, to 290,580 lots, and total positions decreased by 11,830 lots to 280,360 lots. SHFE 1410 zinc contract prices weakened, causing the SHFE/LME zinc price ratio to fall below 7.1. With the exodus of longs, SHFE 1410 zinc contract prices are expected to fall to test the 20-day moving average in the evening.