SHANGHAI, Jul. 24 (SMM) – SHFE 1509 zinc contract prices hovered between RMB 15,130-15,200/mt Wednesday evening, and closed at RMB 15,165/mt, down RMB 225/mt. SHFE 1509 zinc contract prices dropped to RMB 15080/mt after opening, but rose on falling US dollar index and short covering to RMB 15,270/mt, and closed at RMB 15,250/mt, down RMB 140/mt or 0.91%. Trading volumes decreased 3,932 lots to 110,774 lots, and total positions decreased 4,016 to 103,902. SHFE 1509 zinc contract prices are expected to rise to RMB 15,300/mt.
#0 zinc prices were between RMB 15,170-15,260/mt, RMB 20-60/mt above SHFE 1509 zinc contract prices. #1 zinc prices were RMB 15,100-15,130/mt during 9:00-10:15 am, down RMB 300/mt. Cargo holders held spot premiums between RMB 80-100/mt. But with the lack of buying interest, SHFE 1509 zinc contract prices fell to RMB 15,200/mt, with spot premiums down to RMB 20-60/mt. Smelters were reluctant to sell on plunging zinc price. But traders purchased zinc futures whilst selling spot zinc, leaving supply ample. Purchasers bought modestly on high spot premiums, and downstream buying interest was weak, with overall transactions quiet. SHFE 1509 zinc contract prices edged up to RMB 15,250/mt in the afternoon, with spot premiums between RMB 20-60/mt.