SHANGHAI, Feb. 16 (SMM) -- On Wednesday, SHFE 1205 zinc contract prices opened at RMB 15,950/mt, falling to the 20-day moving average in the morning session. Boosted by the Shanghai Composite Index, SHFE 1205 zinc contract prices gained back previous losses after dipping to an intraday low RMB 15,875/mt, touching RMB 16,080/mt in the afternoon. But as a large number of longs left the market with profit-taking, SHFE three-month zinc contract prices rolled back intraday gains to close at RMB 15,945/mt, down RMB 20/mt.
In domestic spot markets, spot discounts against SHFE 1205 zinc contract prices were RMB 300/mt, with spot prices between RMB 15,550-15,600/mt. As SHFE zinc prices rose, spot discounts expanded to RMB 340-350/mt, and traded prices were pushed up to RMB 15,650-15,700/mt, while #1 zinc was traded between RMB 15,500-15,570/mt. A large number of traders entered the market but downstream buyers were cautious, keeping transactions quiet.