SHANGHAI, Feb 8 (SMM) – On Tuesday, SHFE three-month zinc prices lost the RMB 16,000/mt mark at the midday due to the stalemate in Greek debt talks. In the afternoon session, the most actively traded zinc contract in the SHFE market dipped below the 5-day moving averages due to the sell-off, down to an inter-day low of RMB 15,920/mt. At the tail of trading, profit-taking helped SHFE three-month zinc prices rally slightly, with prices finally ending at RMB 16,010/mt, down RMB 170/mt or 1.05%. Trading volumes increased more than 10,000 lots to 176,214 lots, and positions were down 4,532 lots to 155,176 lots.
In the spot market, traded prices for # 0 were between RMB 15,750-15,800/mt in the morning business, with spot discounts over SHFE three-month zinc contract at RMB 350/mt. Along with falling SHFE zinc prices, spot discounts gradually narrowed to RMB 300/mt, and traded prices were around RMB 15,700/mt. Traded prices for #1 zinc were between RMB 15,600-15,650/mt, leaving no price difference compared with imported zinc. As zinc prices kept falling, downstream producers were wary of purchases, and made purchases on an as-needed basis, resulting in moderate trading sentiment. In addition, market supply was not ample on Tuesday, as spot discounts didn’t narrow significantly.