SHANGHAI, Aug. 7 (SMM) – SHFE 1410 zinc contract prices opened lower at RMB 16,950/mt on Tuesday evening, falling to the five-day moving average before rising slightly, and closing at RMB 16,970/mt, down RMB 100/mt or 0.59%. Trading volumes decreased by 90,000 to 228,000 lots, and total positions decreased by 2,758 to 284,716 lots. SHFE 1410 zinc contract prices opened at RMB 16,970/mt on Wednesday, and fell to RMB 16,900/mt due to rising US dollar index and China’s sluggish PMI in the service sector, as well as weakening LME zinc prices, and closed at RMB 16,875/mt, down RMB 195/mt or 1.14%. Trading volumes decreased by 34,574 lots, to 197,720 lots, and total positions decreased by 10,790 lots to 273,926 lots. SHFE 1410 zinc contract prices met resistance at the 10-day moving average, and are expected to test support from the 20-day moving average this evening.
#0 zinc prices were between RMB 16,880-16,950/mt, with spot prices ranging from RMB 20/mt below to RMB 10/mt above SHFE 1410 zinc contract prices. #1 zinc prices were between RMB 16,850-16,870/mt. Although smelters sold modestly, speculators were actively moving goods due to narrowing spot discounts, leading to various brands available. Some speculators purchased at lower prices, while downstream buying interest remained weak. But transactions improved and were mainly made between traders. Shuangyan branded #0 zinc prices were RMB 16,930-16,950/mt in the morning, then moved between RMB 16,910-16,920/mt, once quoted RMB 20/mt above SHFE 1410 zinc contract prices. Prices for Yuguang, Qinxin, Tiefeng, Hongye and Feilong RMB 16,900-16,910/mt, with trading between RMB 16,880-16,890/mt at the end of trading. SHFE 1410 zinc contract prices dipped to RMB 16,830/mt in the afternoon, with spot premiums between RMB 0-10/mt against SHFE 1410 zinc contract prices. #0 zinc prices were between RMB 16,840-16,900/mt.