SHAGNHAI, Dec. 30 (SMM) -- On Thursday, SHFE three-month zinc contract prices opened lower at RMB 14,460/mt, rallying to the moving average in the morning session. In the midday, LME zinc prices stabilized as the Shanghai Composite Index rose, but as large numbers of longs left the market in the afternoon, SHFE three-month zinc contract prices fell below the moving average and closed at RMB 14,575/mt, down RMB 155/mt or 1.05%. Trading volumes were 190,856 lots, and total position increased by 9,324 lots to 236,724 lots.
In domestic spot markets, spot discounts against SHFE 1203 zinc contract prices were negative RMB 120-130/mt, with traded prices between RMB 14,480-14,520/mt, and #1 zinc was traded between RMB 14,450-14,500/mt. Discounts of imported zinc were between negative RMB 150-160/mt. Downstream buyers replenished stocks at lower prices, but only modestly due to cash flow problems at the end of the year.