SHANGHAI, Jul. 9 (SMM) – SHFE 1509 zinc contract prices opened at RMB 15,200/mt Tuesday evening, then fell to RMB 14,505/mt, and closed at RMB 14,875/mt, down RMB 390/mt or 2.55%. SHFE 1509 zinc contract prices slumped after opening on Wednesday, and once dropped to RMB 14,500/mt, down by daily limit, and closed at RMB 14,560/mt, down RMB 705/mt or 4.62%. Trading volumes increased 317,422 to 454,494 lots, and total positions decreased 5,520 to 138,530. SHFE 1509 zinc contract prices will look for price floor this evening.
#0 zinc prices were between RMB 14,840-14,920/mt, RMB 100-200/mt above SHFE 1509 zinc contract prices. #1 zinc prices were RMB 14,790-14,810/mt. SHFE 1509 zinc contract prices fluctuated between RMB 14,680-14,740/mt, with spot premiums of RMB 150-200/mt against the first, but falling to RMB 100-170/mt later due to soft demand. Smelters were unwilling to sell on falling zinc prices, leading to tight supply of some brands. But some traders released goods on expanding spot premiums, with price spreads expanding. Traders remained cautious on high spot premiums, and downstream buying interest was also weak, leaving overall transactions quiet. SHFE 1509 zinc contract prices fell further in the afternoon and dropped by daily limit to RMB 14,500/mt, with both supply and demand anemic.