SHAGNHAI, Sept. 8 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened higher at RMB 16,975/mt, struggling around RMB 17,000/mt in the morning session. Boosted by the rising Shanghai Stock Exchange composite index and LME lead prices, SHFE three-month zinc contract prices edged up to close at RMB 17,145/mt, up RMB 320/mt, or up 1.9%. Trading volumes decreased by nearly 140,000 lots to 311,460 lots, and total positions decreased by 12,900 lots to 251,350 lots.
In domestic spot markets, #0 zinc was traded between RMB 16,750-16,800/mt, with transactions mostly made at the low end, and with discounts of negative RMB 150-180/mt against SHFE three-month zinc contract prices. #1 zinc was traded between RMB 16,700-16,750/mt. Transactions improved due to rising zinc prices. Spot discounts against SHFE three-month zinc contract prices expanded to negative RMB 320/mt in the afternoon in tandem with rising SHFE zinc prices, with quotations up to RMB 16,850/mt. But downstream buyers were cautious then.