SHANGHAI, Jun. 4 (SMM) – SHFE 1508 zinc contract prices opened at RMB 16,505/mt Monday evening, then fluctuated between RMB 16,530-16,540/mt, and closed at RMB 16,520/mt, down RMB 155/mt or 0.93%. Trading volumes decreased 22,670 to 57,326 lots, and total positions grew 5,910 to over 142,744. SHFE 1508 zinc contract prices opened at RMB 16,535/mt on Wednesday, then inched down and dipped to an intraday low of RMB 16,260/mt as a large number of longs left the market, and extended losses in the afternoon with falling LME zinc prices, and closed at RMB 16,345/mt, down RMB 185/mt or 1.12%. Trading volumes increased 45,090 to 180,892 lots, and total positions fell 1,936 to 138,514. SHFE 1508 zinc contract prices are expected to fall further this evening.
#0 zinc prices were between RMB 16,380-16,410/mt, RMB 100-80/mt below SHFE 1508 zinc contract prices and RMB 70-50/mt below SHFE 1507 zinc contract prices. #1 zinc prices were RMB 16,350-16,370/mt. SHFE 1508 zinc contract prices fell RMB 50/mt, causing spot discounts to narrow RMB 20/mt. Some smelters held back goods, but traders and cargo holders both releases goods, leaving supply ample. Traders engaged in term contracts actively, but downstream buyers mostly took a wait-and-see attitude, with overall transactions quiet. SHFE 1508 zinc contract prices fell slightly in the afternoon, with spot discounts of #0 zinc narrowing RMB 10-20/mt.