SHANGHAI, Sept. 2 (SMM) – SHFE 1511 zinc contract prices opened at RMB 14,610/mt Monday evening, then dipped to RMB 14,565/mt, but raced up to RMB 14,700/mt due to short covering and closed at RMB 14,690/mt, down RMB 40/mt or 0.27%. SHFE 1511 zinc contract prices touched RMB 14,785/mt after opening, then fluctuated between RMB 14,700-14,750/mt, and inched lower in the afternoon, and closed at RMB 14,680/mt, down RMB 50/mt or 0.34%. Trading volumes decreased 14,502 to 64,450 lots, and total positions grew 516 to 119,416.
#0 zinc prices were between RMB 14,830-14,890/mt, RMB 60-120/mt above SHFE 1510 zinc contract prices. #1 zinc supply was tight, with prices of RMB 14,730-14,750/mt. Imported #0 zinc prices were RMB 60-50/mt below SHFE 1510 zinc contract prices, with the latter trading between RMB 14,740-14,820/mt. Supply was ample, but trading was muted, pushing down spot premiums. Spot premiums continued to fall in the afternoon, with major brands trading between RMB 14,780-14,840/mt. Some traders and downstream buyers bought at lows, allowing transactions to improve in the afternoon.