SHAGNHAI, Sept. 2 (SMM) -- On Thursday, SHFE three-month zinc contract prices opened at RMB 17,355/mt, and then dropped slightly along with other base metals prices. China’s PMI for August rose to 50.9, boosting SHFE three-month zinc contract prices to rally to RMB 17,300/mt. As LME zinc prices plummeted due to the rising US dollar index, SHFE three-month zinc contract prices inched down in the afternoon to close at RMB 17,205/mt, down RMB 120/mt, or a retreat of 0.69%. Trading volumes increased by nearly 90,000 lots to 334,024 lots, while total positions decreased by 308 lots to 261,318 lots.
In domestic spot markets, #0 zinc was traded between RMB 17,000-17,050/mt, with discounts remaining between negative RMB 180-200/mt. Cargo holders held spot prices firm despite falling SHFE zinc prices at noon, with transactions below RMB 17,000/mt seldom reported. #1 zinc was traded between RMB 16,950-17,000/mt. The market was cautious due to price volatility, leaving the overall transactions muted. Spot transactions were rarely reported as SHFE zinc prices fell further in the afternoon, with discounts remaining around negative RMB 200/mt.