SHAGNHAI, Dec. 28 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened lower at RMB 14,600/mt and were bearish lacking direction from the LME market. As large numbers of shorts left the market, SHFE zinc prices edged up, but fell along with the Shanghai Composite Index, below the moving average. Finally, SHFE three-month zinc contract prices pared previous losses to close at RMB 14,710/mt, down RMB 15/mt. Trading volumes decreased by 120,000 lots to 249,160 lots, and total position decreased by 26,376 lots to 236,594 lots.
In domestic spot markets, #0 zinc maintained discounts between negative RMB 130-150/mt against SHFE 1203 zinc contract prices, with traded prices between RMB 14,550-14,600/mt. #1 zinc was traded between RMB 14,500-14,550/mt. Imported zinc was still RMB 170-180/mt below SHFE 1203 zinc contract prices. Downstream buying interest improved in the afternoon as SHFE zinc prices stabilized, with traded prices between RMB 14,540-14,580/mt.