SHAGNHAI, Sept. 16 (SMM) -- On Thursday, SHFE three-month zinc contract prices opened slightly lower RMB 16,820/mt, continuing falling to RMB 16,685/mt in the morning session. As Shanghai Stock Exchange composite index rebounded, SHFE three-month zinc contract prices gained back previous losses and touched an intraday high RMB 16,865/mt at noon, with prices closing at RMB 16,780/mt, down RMB 70/mt. Trading volumes decreased by over 90,000 lots to 254,758 lots, and total positions decreased by 18,072 lots to 213,382 lots. Market players were generally cautious, leaving transactions quiet.
In domestic spot markets, # 0 zinc was traded as low as RMB 16,550-16,600/mt in the morning. As SHFE zinc prices rose later the day, discounts remained between negative RMB 130-150/mt against SHFE three-month zinc contract prices, while # 0 zinc was traded between RMB 16,650-16,700/mt, and #1 zinc was traded between RMB 16,600-16,650/mt. Downstream buyers were cautious due to falling zinc prices, leaving transactions muted. Although some downstream buyers increased purchases as SHFE zinc prices were fluctuating at low levels in the afternoon, the overall transactions did not improve.