SHAGNHAI, Oct. 19 (SMM) -- On Tuesday, SHFE 1112 zinc contract prices opened lower at RMB 15,080/mt tracking LME zinc prices overnight, and plunged to RMB 14,705/mt, finding support to move between RMB 14,600-14,700/mt. As China's GDP for the third quarter was 9.1%, in line with market speculations, implying China will continue tightening monetary policies by the yearend. As a result, SHFE zinc prices fell further to close at RMB 14,515/mt, down RMB 790/mt, or down 5.16%. Trading volumes increased by 180,000 lots to 373,154 lots, and total positions increased by 1,402 lots to 183,340 lots.
In domestic spot markets, #0 zinc was traded between RMB 14,850-14,900/mt, with premiums of RMB 150-200/mt against SHFE 1112 zinc contract prices. #1 zinc was traded between RMB 14,800-14,850/mt. Arbitragers had low goods at hand despite high premiums, while smelters were holding goods, leaving good supply available in the market limited. In this context, transactions were quiet despite downstream buyers were actively replenishing inventories at lower prices.