SHANGHAI, Jan. 20 (SMM) -- Transactions of SHFE 1004 zinc contract were brisk, and SHFE 1004 zinc contract prices moved around RMB 20,780/mt, with positions down 22,306 lots. SHFE 1005 zinc contract became the dominant contract, with positions up 32,826 lots, and SHFE 1005 zinc contract prices lcosed at RMB 21,245/mt finally, with the highest level at RMB 21,175/mt, and with a growth of 2.7% compared with the previous trading day, but the weak KD indicator exerted pressure on spot transactions.
On January 19th, spot discounts for #0 zinc were RMB 500/mt against SHFE 1004 zinc contract in Shanghai market, and the lowest spot zinc prices were only RMB 20,200/mt, with low-end spot discounts at RMB 150/mt against SMM zinc prices. However, #0 zinc prices rebounded above RMB 20,300/mt rapidly following rebounding SHFE zinc prices, but overall trading volumes were limited, since downstream buyers were waiting for lower zinc prices below RMB 20,000/mt. In this context, SMM believes spot zinc prices gained strong support between RMB 19,900-20,000/mt.
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