SHAGNHAI, Dec. 8 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened slightly higher at RMB 15,765/mt as German Industry orders were much better than forecasts, and dipped to RMB 15,660/mt in the morning session, below the 5-day moving average. As a large number of longs entered the market, SHFE three-month zinc contract prices rallied to the moving average, moving between RMB 15,700-15,800/mt, and finally closed at RMB 15,815/mt, up RMB 180/mt. Trading volumes decreased by 30,000 lots to 158,164 lots, and total position decreased by 7,380 lots, to 156,756 lots. SHFE zinc prices found support at the 5-day moving average, but met resistance at RMB 16,000/mt level.
In domestic spot markets, discounts of #0 zinc expanded to negative RMB 120-150/mt against SHFE 1202 zinc contract prices, with traded prices between RMB 15,600-15,620/mt. Imported zinc was traded around RMB 15,570/mt. #1 zinc was traded between RMB 15,550-15,600/mt. Cargo holders were actively moving goods, but downstream buyers were cautious, purchasing on an as-needed basis, leaving the overall transactions quiet.