SHAGNHAI, Sept. 1 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened slightly higher at RMB 17,380/mt, with prices fluctuating around the moving average in the morning session. Dragged down by LME zinc prices, SHFE three-month zinc contract prices fell to an intraday low RMB 17,270/mt at noon, but rallied along with the rebounding LME zinc prices in the afternoon, with prices finally closing at RMB 17,360/mt, up RMB 70/mt, above the 5-day moving average. Trading volumes decreased by nearly 160,000 lots to 248,168 lots, and total positions decreased by 4,106 lots to 261,666 lots.
In domestic spot markets, as SHFE three-month zinc contract prices fluctuated around the moving average in the morning session and then fell, prices for #0 zinc were between RMB 17,000-17,050/mt in the morning session, then dropped to RMB 17,000/mt, with discounts remaining at negative RMB 180/mt against SHFE 1110 zinc contract prices. #1 zinc was traded around RMB 16,950/mt. Downstream buying interest was low at RMB 17,000/mt, leaving the overall transactions muted. Spot discounts expanded to negative RMB 200-230/mt against SHFE 1110 zinc contract prices along with rising SHFE zinc prices, some buyers with sufficient cash flow increased purchases due to optimistic speculations.