SHANGHAI, Jul. 16 (SMM) – SHFE 1509 zinc contract prices opened at RMB 15,470/mt Tuesday evening, then edged up to RMB 15,600/mt, and closed at RMB 15,610/mt, up RMB 90/mt or 0.58%. SHFE 1509 zinc contract prices edged up after opening, but met resistance at RMB 15,700/mt on Wednesday with the exodus of longs, and closed at RMB 15,695/mt, up RMB 175/mt or 1.13%. Trading volumes increased 13,908 lots to 151,268 lots, and total positions decreased 568 to 124,648.

Positions of SHFE spot-month zinc contracts held stable at 7,330, with prices fluctuating between RMB 15,650-15,680/mt, and closing at RMB 15,675/mt.

#0 zinc prices were between RMB 15650-15690/mt, RMB 10/mt below or RMB 20/mt above SHFE 1509 zinc contract prices. #1 zinc prices were RMB 15,600-15,620/mt. SHFE 1509 zinc contract prices rose to RMB 15,650-15,690/mt during 9:00-10:15 am, with spot #0 zinc prices RMB 10/mt below or RMB 20/mt above SHFE 1509 zinc contract prices, with trading quiet. SHFE 1509 zinc contract prices dropped to RMB 15,630-15,640/mt during 10:30-11:30 am, with spot premiums between RMB 10-20/mt. Smelters ramped up supply on rising zinc prices, but traders held back goods. Some cargo holders were also reluctant to sell as the delivery date nears, leaving supply limited. Purchases were muted on weak end-user demand and expectations of goods releases after delivery, leaving overall transactions lackluster. SHFE 1509 zinc contract prices continued to climb in the afternoon, growing supply, but downstream buying interest was low, with spot prices ranging from RMB 10/mt below to RMB 10/mt above SHFE 1509 zinc contract prices.