SHAGNHAI, Nov. 17 (SMM) -- On Wednesday, SHFE three-month zinc contract prices surged to RMB 15,380/mt after opening, and fluctuated around the moving average. Dragged down by domestic stocks markets and LME zinc prices overnight, SHFE zinc prices inched down as of 9:40 am, below the moving average, and dipped to the intraday low RMB 15,020/mt, finding support at RMB 15,000/mt. Finally, SHFE three-month zinc contract prices closed at RMB 15,125/mt, down RMB 165/mt, or down 1.08%. Trading volumes increased by 23,746 lots to 197,476 lots, and total position decreased by 12,474 lots to 158,580 lots.
In domestic spot markets, spot prices were close to SHFE 1201 zinc contract prices as SHFE three-month zinc contract prices touched RMB 15,430/mt after opening. SHFE zinc prices moved lower and rolled back previous gains later the day, with market participants cautious. Traders and downstream buyers were unwilling to purchase. #0 zinc was mainly traded between RMB 15,200-15,250/mt, with transactions muted at the high end. #1 zinc was mainly traded between RMB 15,150-15,200/mt, with the overall transaction quiet. In the afternoon, SHFE zinc prices continued to fall to RMB 15,000/mt, with transactions improving. #0 zinc was traded around RMB 15,100/mt, close to SHFE 1201 zinc contract prices. Spot zinc prices fell to as low as RMB 15,050/mt as SHFE zinc prices plunged. Downstream buyers replenished inventories at lower prices, while traders were also purchasing actively. Smelters were moving goods at normal levels due to higher prices, with transactions brisk in the afternoon.