SHANGHAI, Feb. 13 (SMM) -- Last Friday, SHFE three-month zinc contract prices opened slightly higher at RMB 16,265/mt, trying to rise but meeting resistance in the morning session to move between RMB 16,150-16,250/mt. As a large number of longs left the market with profit-taking, SHFE three-month zinc contract prices fell below the moving average and finally closed at RMB 16,130/mt, down RMB 50/mt.
In domestic spot markets, discounts of #0 zinc were between RMB 300-350/mt, with traded prices between RMB 15,850-15,900/mt. #1 zinc prices were around RMB 15,800/mt, with discounts of RMB 420/mt. Imported zinc prices were quoted RMB 470/mt below SHFE three-month zinc contract prices. Traders were actively purchasing due to favorable discounts. Discounts fell to RMB 280/mt in the afternoon as SHFE zinc prices dipped, but downstream buying interest was still low.