SHANGHAI, Dec. 7 (SMM) -On Tuesday, SHFE three-month zinc contract prices opened low at RMB 15,650/mt, and then slid to an inter-day low level of RMB 15,605/mt. Later, the most actively-traded zinc contract in the SHFE market railed to above the daily moving averages. As LME zinc prices fell to USD 2,002/mt, SHFE three-month zinc prices edged lower during the afternoon session, but then returned above the daily moving averages along with buying activities by the longs, with prices fluctuating between RMB 15,660-15,690/mt. Finally, SHFE three-month zinc prices closed at RMB 15,670/mt, down RMB 55/mt. Trading volumes were down 41,132 lots to 181,232 lots, and positions were down 8,430 lots to 164,136 lots. Despite some support at the 60-day moving averages, SHFE zinc prices tried to hold at RMB 15,600/mt.
On Tuesday, SHFE three-month zinc prices returned above the daily moving averages along with rebounds from a low open, and in the spot market, spot zinc prices dropped, with little changes in discounts. Deals for #0 zinc were between RMB 15,550-15,600/mt, and discounts over SHFE 1202 zinc were between RMB 90-100/mt, with transactions generally made at the low end. In the afternoon business, spot discounts expanded to RMB 110/mt, but generated little buying interest. Offers for imported zinc were at discounts of RMB 120-130/mt over SHFE 1202 zinc. Deals for #1 zinc were between RMB 15,500-15,550/mt. As a slew of data is expected to be released this week, markets are waiting for the results. As a result, overall market trading sentiment was quiet on Tuesday.