SHAGNHAI, Sept. 7 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened lower at RMB 16,940/mt, moving between RMB 16,900-17,000/mt in the morning session. Dragged down by LME zinc prices, SHFE three-month zinc contract prices dipped to RMB 16,670/mt in the midday, but gained back some losses at the end of trading due to rebounding LME zinc prices and since some shorts left the market with profit-taking, finally closing at RMB 16,855/mt, down RMB 165/mt. Trading volumes increased by nearly 70,000 lots to 457,888 lots, and total positions increased by 176 lots to 264,250 lots.
In domestic spot markets, #0 zinc was traded around RMB 16,800/mt in the morning, with discounts of negative RMB 160/mt against SHFE three-month zinc contract prices, but prices fell to as low as RMB 16,600/mt as noon, tracking SHFE zinc prices, with discounts remaining between negative RMB 140-160/mt. #1 zinc was traded between RMB 16,550-16,600/mt. Spot zinc was quoted as low as RMB 16,550/mt in the afternoon in response to the tumbling SHFE zinc prices, with downstream buyers active at lower prices. Smelters continued moving goods due to the pressure from tight cash flow, weighing down zinc prices.