SHAGNHAI, Dec. 5 (SMM) -- Last Friday, SHFE three-month zinc contract prices opened at RMB 15,795/mt and dipped to RMB 15,685/mt in the morning session. As a large number of longs entered the market, SHFE three-month zinc contract prices rallied to the moving average, between RMB 15,700-15,750/mt, and finally closed at RMB 15,795/mt, down RMB 20/mt. Trading volumes decreased by 160,000 lots to 310,000 lots, and total position decreased by 11,138 lots to168,332 lots. A large number of investors left the market due to pessimism.
In domestic spot markets, spot prices were RMB 80-100/mt below SHFE 1202 zinc contract prices. #0 zinc was traded between RMB 15,650-15,700/mt, with transactions made at the low end, even as low as RMB 15,630/mt. #1 zinc was traded between RMB 15,600-15,650/mt. Traders held goods due to unfavorable discounts, while downstream buyers were cautious, leaving transactions extremely quiet.