SHANGHAI, Aug. 15 (SMM) – SHFE 1410 zinc contract prices opened lower at RMB 16,545/mt Wednesday evening, dipping to as low as RMB 16,430/mt, and closing at RMB 16,455/mt, down RMB 230/mt or 1.38%. Trading volumes increased by 54,048 to 300,830 lots, and total positions grew by 2,772 to 249,856 lots. SHFE 1410 zinc contract prices opened at RMB 16,455/mt on Thursday, dipping to a one-month low of RMB 16,335/mt in the morning, dragged down by LME zinc prices. But since LME zinc prices dropped more slowly later the day, SHFE 1410 zinc contract prices closed at RMB 16,440/mt, down RMB 245/mt or 1.47%. Trading volumes increased by 23,796 lots, to 606,510 lots, and total positions decreased by 9,316 lots to 240,540 lots. SHFE 1410 zinc contract prices are faced with downward pressure this evening since Germany’s Q2 GDP shrank for the first time in two years, and since euro zone GDP data is also pessimistic.
#0 zinc prices were between RMB 16,430-16,490/mt, with spot premiums between RMB 30-80/mt above SHFE 1410 zinc contract prices. #1 zinc prices were between RMB 16,410-16,430/mt. SHFE 1410 zinc contract prices inched down to RMB 16,380/mt during the first trading session, allowing spot premiums to expand to RMB 50-80/mt, and prompting cargo holders to sell. But speculators showed little interest in buying. SHFE 1410 zinc contract prices rallied to RMB 16,430/mt during the second trading session, causing spot premiums to narrow to RMB 30-50/mt. Downstream buying interest was low due to market pessimism, and speculators also stood on the sidelines, with transactions mainly made among traders and trading muted. Shuangyan branded #0 zinc prices were RMB 16,450-16,490/mt, with RMB 16,420-16,450/mt for Yuguang, Qinxin, Qilin and Jiulong zinc. AZ #0 zinc was traded between RMB 16,400-16,440/mt. SHFE 1410 zinc contract prices fluctuated between RMB 16,420-16,520/mt in the afternoon, and spot premiums narrowed to RMB 20/mt against SHFE 1410 zinc contract prices given sluggish purchases from speculators and traders.