SHANGHAI, Aug. 10 (SMM) – SHFE 1510 zinc contract prices opened at RMB 14,550/mt last Thursday evening, then hovered around RMB 14,450/mt, and closed at RMB 14,435/mt, down RMB 200/mt or 1.37%. SHFE 1510 zinc contract prices fluctuated around RMB 14,450/mt Friday morning, then dipped to RMB 14,265/mt in the afternoon, a new low since June 26, 2013, but rallied due to short covering and closed at RMB 14,410/mt, down RMB 225/mt or 1.54%. Trading volumes surged 151,834 to 260,896 lots, and total positions increased 10,536 to 173,404. SHFE 1509 zinc contract prices are expected to look for price floor.
#0 zinc prices were between RMB 14,840-14,880/mt, RMB 410-450/mt above SHFE 1510 zinc contract prices last Friday. #1 zinc prices were RMB 14,790-14,800/mt. Spot premiums of imported zinc were RMB 300-350/mt against SHFE 1510 zinc contract prices. SHFE 1510 zinc contract prices dipped to as low as RMB 14,350/mt after opening. Smelters continued to hold back goods, and traders raised their quotes. Trading volumes of registered #0 zinc increased, but trading was quiet. Trading for imported zinc declined, with the price spread between imported and domestic zinc widening. Downstream buyers purchased as needed, leaving overall transactions muted. SHFE 1510 zinc contract prices fluctuated in a wider range in the afternoon, and edged lower, with spot premiums of #0 zinc up to RMB 500-530/mt, and trading lackluster.