SHAGNHAI, Nov. 10 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened at RMB 15,500/mt, touching an intraday high RMB 15,540/mt. As China's CPI for October was in line with market speculations, SHFE three-month zinc contract prices plummeted and found support at the 5-day moving average. In the afternoon, SHFE three-month zinc contract prices gained back some losses to move between RMB 15,390-15,460/mt, and finally closed at RMB 15,455/mt, up RMB 115/mt. Trading volumes increased by nearly 10,000 lots to 252,862 lots, and total position decreased by 4,814 lots to 191,386 lots.
In domestic spot markets, #0 zinc was traded between RMB 15,430-15,440/mt, with discounts of negative RMB 20-30/mt against SHFE 1201 zinc contract prices, with transactions brisk. As SHFE three-month zinc contract prices inched down later the day, spot discounts of #0 zinc narrowed to negative RMB 10-20/mt, while mainstream traded prices of #1 zinc were between RMB 15,330-15,350/mt. Market players were cautious as zinc prices fell, leaving transactions muted at noon. In the afternoon, imported zinc prevailed in the market, with prices RMB 50-80/mt below domestic zinc prices. Downstream buyers and traders were cautious due to pessimism.