SHAGNHAI, Nov. 16 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened lower and then edged up along with LME zinc prices overnight, but met resistance at RMB 15,400/mt. Dragged down by LME zinc prices overnight, SHFE three-month zinc contract prices plunged to an intraday low RMB 15,200/mt after opening, and stopped falling between RMB 15,260-15,310/mt, with prices finally closing at RMB 15,305/mt, down RMB 20/mt. Trading volumes decreased by 170,880 lots to 173,730 lots, and total position decreased by 14,206 lots to 171,058 lots.
In domestic spot markets, #0 zinc was traded above RMB 15,300/mt despite SHFE three-month zinc contract prices opened lower, with premiums of RMB 10/mt against SHFE three-month zinc contract prices. As SHFE zinc prices edged up later the day, traders were cautious due to price volatility, with spot prices RMB 10/mt higher or RMB 10/mt lower. Mainstream traded prices of #0 zinc were around RMB 15,300/mt,while #1 zinc was traded between RMB 15,240-15,260/mt. Imported zinc was quoted RMB 40/mt lower than SHFE three-month zinc contract prices. In the afternoon, SHFE zinc prices further weakened, with premiums expanding to RMB 20/mt, and with mainstream traded prices of #0 zinc between RMB 15,270-15,280/mt. Smelters reduced goods supply as zinc prices fluctuated, with goods supply mainly available from traders. Downstream buyers purchased modestly, and the market was cautious due to prices volatility, keeping transactions muted.