SHAGNHAI, Aug. 18 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened higher and surged but met resistance at RMB 17,000/mt, with prices generally moving between RMB 16,800-16,900/mt during the day. A large number of shorts left the market with profit-taking, pushing up SHFE three-month zinc contract prices to break through RMB 17,000/mt. Finally, SHFE three-month zinc contract prices closed at RMB 16,975/mt, up RMB 160/mt. Trading volumes decreased by over 40,000 lots to 420,088 lots, and total positions decreased by 28,042 lots to 213,414 lots.
In spot markets, as SHFE three-month zinc contract prices surged after opening, spot zinc prices rose in response. #0 zinc was traded between RMB 16,650-16,700/mt, with discounts of negative RMB 200/mt against SHFE 1111 zinc contract prices, and with transactions generally made at the high end. #1 zinc was traded between RMB 16,600-16,650/mt. Downstream buyers took a wait-and-see sentiment at fluctuating zinc prices, while traders were also cautious as discounts remained at low levels, keeping the overall transactions muted.