SHAGNHAI, Jan. 18 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,325/mt, with prices moving between RMB 15,350-15,450/mt in the morning session around the moving average. Due to better-than-forecast China’s GDP and rising Shanghai Composite Index, SHFE three-month zinc contract prices surged to RMB 15,610/mt in the midday, and finally closed at RMB 15,525/mt, up RMB 275/mt or 1.8%. Trading volumes increased by 100,000 lots to 291,798 lots, and total position increased by 7,296 lots to 166,468 lots.
In domestic spot markets, spot discounts were between RMB 350-400/mt against SHFE 1204 zinc contract prices, and #0 zinc was traded around RMB 15,000/mt. As SHFE zinc prices rose at noon, spot discounts expanded to RMB 400-450/mt, with traded prices between RMB 15,050-15,100/mt. #1 zinc was traded between RMB 15,000-15,050/mt. Investors were actively purchasing due to expanding discount, but as smelters barely moved goods and since some traders had closed for the holiday domestic registered brands were unavailable in the market.