SHANGHAI, Aug. 8 (SMM) – SHFE 1410 zinc contract prices opened lower at RMB 16,755/mt on Wednesday evening, and rallied to RMB 16,880-16,940/mt due to strong long momentum, and closing at RMB 16,905/mt. Trading volumes grew by 34,100 to 262,180 lots, and total positions increased by 10,204 to 284,130 lots. SHFE 1410 zinc contract prices opened at RMB 16,900/mt on Thursday, and edged up to an intraday high of RMB 17,040/mt due to rising LME zinc prices, but met resistance at the 10-day moving average, and closed at RMB 16,960/mt, up RMB 40/mt or 0.24%. Trading volumes increased by 79,950 lots, to 505,750 lots, and total positions decreased by 7,980 lots to 265,946 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. As LME zinc prices weakened during European trading hours, SHFE 1410 zinc contract prices should test support from the 5 and 20-day moving average this evening.
#0 zinc prices were between RMB 16,970-17,000/mt, with spot prices RMB 0-30/mt below SHFE 1410 zinc contract prices. #1 zinc prices were between RMB 16,930-16,960/mt. SHFE 1410 zinc contract prices opened at RMB 16,755/mt and rose to RMB 17,000/mt, followed by spot zinc prices, leaving spot discounts little changed. As zinc prices advanced, cargo holders began to hold goods. When combined with limited supply from smelters, speculators purchased actively. But downstream buying interest was weak as zinc prices climbed above RMB 17,000/mt. Transactions improved and were mainly made among traders. Shuangyan branded #0 zinc prices were RMB 16,940-16,960/mt in the morning, with RMB 16,930-16,950/mt for other regular brands. During 10:30-11:30 am, Shuangyan branded #0 zinc prices were RMB 16,990-17,000/mt. Prices for Yuguang, Qinxin, Qilin and SMC brand zinc were RMB 16,970-16,990/mt. SHFE 1410 zinc contract prices fell to RMB 16,960-17,000/mt in the afternoon, with spot discounts narrowing to RMB 0-20/mt against SHFE 1410 zinc contract prices.