SHAGNHAI, Oct. 17 (SMM) -- Last Friday, SHFE three-month zinc contract prices opened lower at RMB 15,080/mt. China’s CPI for September was still high at 6.1%, triggering concerns over high inflation. Meanwhile, the Shanghai Composite Index weakened. As a result, SHFE three-month zinc contract prices fell below the moving average at a time, and rallied at noon. In the afternoon, SHFE zinc prices gained back previous losses to close at RMB 15,295/mt, up RMB 125/mt, or up 0.82%. Trading volumes decreased by over 6,000 lots to 246,792 lots, and total positions decreased by 14,284 lots to 186,592 lots.
In domestic spot markets, #0 zinc was traded between RMB 15,180-15,220/mt, close to or RMB 20/mt higher than SHFE 1112 zinc contract prices. #1 zinc was traded between RMB 15,130-15,150/mt. Downstream buyers purchased modestly ahead of the weekend and since it was the last trading day before the delivery date, keeping transactions quiet. In the afternoon, spot prices rose along with SHFE zinc prices, close to SHFE 1112 zinc contract prices, and transactions were more muted.