SHANGHAI, Aug. 6 (SMM) – SHFE 1510 zinc contract prices opened at RMB 14,810/mt Tuesday evening, then reached RMB 14,870/mt, but fell back and closed at RMB 14,745/mt. Trading volumes on SHFE zinc were over 60,000, and total positions increased 1,318 to 316,516. SHFE 1510 zinc contract prices dipped to RMB 14,645/mt after opening on Wednesday, then surged to RMB 14,800/mt with rebounding China’s A-share market in the afternoon. But since China’s A-share market plunged again at the end of trading, SHFE 1510 zinc contract prices closed at RMB 14,735/mt, up RMB 105/mt or 0.72%. Trading volumes decreased 29,006 to 104,676 lots, and total positions increased 3,066 to 155,098. SHFE 1509 zinc contract prices are expected to consolidate.
#0 zinc prices were between RMB 14,950-14,980/mt, RMB 280-300/mt above SHFE 1510 zinc contract prices on Monday. #1 zinc prices were RMB 14,890/mt. Spot premiums were RMB 280-300/mt against SHFE 1510 zinc contract prices when the latter fluctuated below RMB 14,700/mt after opening, with trading quiet. As SHFE 1510 zinc contract prices rose above RMB 14,700/mt, spot premiums of #0 zinc fell to RMB 270-290/mt against SHFE 1510 zinc contract prices. Smelters held back goods on rising zinc prices, leaving deliverable zinc limited. However, traders sold actively. Downstream buying interest was weak. Spot premiums of registered #0 zinc against SHFE 1510 zinc contract prices were RMB 260-280/mt in the afternoon. Shuangyan zinc prices were between RMB 14,990-15,020/mt, with spot premiums against SHFE 1510 zinc contract prices of RMB 280-300/mt. Traders purchased at lows, but trading was muted.
