SHAGNHAI, Sept. 15 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened at RMB 16,980/mt, and inched down to an intraday low RMB 16,635/mt. In the afternoon, SHFE three-month prices rallied to RMB 16,800/mt as a large number of longs entered the market, but fell slightly at the end of trading to close at RMB 16,710/mt, down RMB 215/mt, or down 1.27%. Trading volumes increased by over 30,000 lots to 341,138 lots, and total positions decreased by 324 lots to 231,454 lots.
In domestic spot markets, #0 zinc was traded between RMB 16,700-16,750/mt in the morning session, with discounts remaining around negative RMB 150/mt against SHFE 1111 zinc contract prices. As SHFE zinc prices fell at noon, spot discounts remained unchanged, while spot prices slumped to RMB 16,700/mt. But cargo holders were seldom moving goods, holding prices firm. #1 zinc was traded between RMB 16,650-16,700/mt. Downstream buyers were cautious due to continuing falling zinc prices, leaving morning transactions lower than the previous day. As SHFE zinc prices fell further in the afternoon, spot discounts remained unchanged, while #0 zinc prices slid to RMB 16,600/mt, causing some downstream buyers to purchase at lower prices. Imported zinc was recently popular in the market, with brands of AZ, and mainly from Peru, with quotations close to #1 zinc prices. But downstream buyers preferred to buy domestic #0 zinc instead of imported zinc.