SHANGHAI, Mar. 8 (SMM) – On Wednesday, SHFE 1705 zinc opened at RMB 21,900/mt and then advanced to RMB 22,015/mt briefly. The contract later declined to RMB 21,880/mt, down as low as RMB 21,820/mt, and then declined to RMB 22,050/mt thanks to positions opening by longs, up to as high as RMB 22,110/mt. During the afternoon trading, SHFE 1705 zinc mainly fluctuated at around RMB 22,000/mt and closed at RMB 22,000/mt, down RMB 285/mt or 1.28%. Trading volumes increased 136,000 to 391,000 lots and positions rose 23,898 to 230,000. Trading volumes of all SHFE zinc contracts were up 221,000 to 895,000 lots with positions up 13,044 to 451,000. People’s Bank of China withdrew a net RMB 10 billion on Tuesday and withdrew RMB 20 billion on Wednesday, tightening liquidity further. SHFE 1705 zinc dropped for five days in a row and declined below RMB 22,000/mt.
SHFE 1705 zinc will remain weak on Wednesday’s night trading.