SHAGNHAI, Sept. 29 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened higher at RMB 15,105/mt, tracking LME zinc prices overnight, and then inched down in the morning session. Dragged down by LME zinc prices and the Shanghai Composite Index, SHFE three-month zinc contract prices plunged to RMB 14,680/mt at noon, but rallied to close at RMB 15,005/mt, up RMB 55/mt. Trading volumes increased by 4,000 lots to 548,658 lots, and total positions decreased by 1,476 lots to 214,656 lots.
In domestic spot markets, #0 zinc was traded between RMB 15,000-15,050/mt, with discounts of negative RMB 50-60/mt against SHFE 1112 zinc contract prices. Spot prices fell to RMB 14,950-15,000/mt at noon along with SHFE zinc prices, with #1 zinc traded around RMB 14,950/mt. Downstream buyers were cautious due to price volatility, which were also in the face of cash-flow problems, keeping transactions quiet.