SHANGHAI, Jan. 8 (SMM) -- SHFE zinc prices opened high and moved higher, but later plunged to RMB 21,350/mt after setting a new high of USD 22,600/mt, with a fluctuation rate exceeding 4%. Positions of SHFE three-month zinc contract declined by 14,558 lots due to profit-taking, and the turnover rate was 354%, with trading value reaching RMB 57.2 billion. SHFE zinc prices stabilized in the afternoon, and closed at RMB 21,720/mt finally, only down 0.23%.
In spot markets, spot offers remained stable between RMB 21,100-21,200/mt, and most market players stayed out of the market, with no sell-off activities reported. Downstream consumers and a portion of traders were waiting for reductions in zinc prices after constant increases so as to replenish stocks. Whether or not zinc prices can find support above RMB 21,000/mt will depend on the support from optimistic market sentiment and speculative funds.
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