SHANGHAI, Aug. 4 (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.
#0 zinc prices were between RMB 16,780-16,820/mt, with spot discounts of RMB 0-20/mt against SHFE 1410 zinc contract prices. #1 zinc prices were between RMB 16,760-16,780/mt. SHFE 1410 zinc contract prices opened at RMB 16,695/mt, then fluctuated between RMB 16,750-16,810/mt. Trading was muted as spot discounts remained largely unchanged. Cargo holders sold actively, but downstream demand was sluggish. Shuangyan branded #0 zinc prices were RMB 16,800-16,820/mt, with RMB 16,780-16,800/mt for Yuguang, Qinxin, Qilin and Hongda brand zinc. Imported #0 zinc availability was low, with prices between RMB 16,740-16,760/mt. SHFE 1410 zinc contract prices hovered between RMB 16,810-16,880/mt in the afternoon, with spot discounts between RMB 50-30/mt, and #0 zinc prices between RMB 16,800-16,850/mt.