SHANGHAI, May 18 (SMM) – SHFE 1507 zinc contract prices opened at RMB 16,940/mt Thursday evening, then dropped to RMB 16,840/mt, and closed at RMB 16,870/mt, down RMB 0.82%. Trading volumes decreased 64,456 to 86,050 lots, and total positions fell 2,054 to 130,018. SHFE 1507 zinc contract prices opened at RMB 16,875/mt on Friday, then fluctuated below RMB 17,000/mt as a large number of long left the market, and closed at RMB 16,935/mt, down RMB 75/mt or 0.44%. Trading volumes decreased 52,888 to 121,098 lots, and total positions fell 14,704 to 117,368. SHFE 1507 zinc contract prices are expected to drop below the 20-day moving average this evening.

#0 zinc prices were between RMB 16,730-16,790/mt, RMB 140-110/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 16,750-16,780/mt. SHFE 1507 zinc contract prices fell further, with spot discounts largely unchanged. Traders sold actively, and smelters moved goods normally, leaving supply sufficient. Downstream buying interest, however, was weak. Shuangyan #0 zinc prices were RMB 16,760-16,790/mt, RMB 120-110/mt below SHFE 1507 zinc contract prices. Qilin, Jiulong and Qinxin #0 zinc prices were RMB 16,730-16,760/mt, with spot discounts of RMB 140-130/mt against SHFE 1507 zinc contract prices. SHFE 1507 zinc contract prices edged up to RMB 16,900/mt in the afternoon, with cargo holders holding back goods. Discounts of Shuangyan #0 zinc expanded RMB 10-20/mt.