SHAGNHAI, Aug. 24 (SMM) -- On Tuesday, SHFE 1111 zinc contract prices opened lower at RMB 16,875/mt and plummeted to RMB 16,705/mt. HSBC PMI for August was 49.8, better than forecasts, boosting the Shanghai Stock Exchange composite index. As a result, SHFE 1111 zinc contract prices rallied to the moving average, fluctuating between RMB 16,800-16,850/mt during the day. At the end of trading, SHFE 1111 zinc contract prices closed at RMB 16,915/mt, down RMB 45/mt. Trading volumes decreased by nearly 10,000 lots to 461,226 lots, while total positions increased by 3,118 lots to 259,720 lots, with the short momentum still stronger.
In domestic spot markets, spot zinc prices fell in tandem with SHFE zinc prices, with discounts further contracting. #0 zinc was traded between RMB 16,700-16,750/mt, with discounts of negative RMB 150/mt against SHFE 1111 zinc contract prices, and #1 zinc was traded between RMB 16,650-16,700/mt. Cargo holders were unwilling to move goods, keeping transactions muted. As SHFE zinc prices rose at the end of trading, downstream buying interest improved, with traded prices between RMB 16,750-16,800/mt.