SHANGHAI, Feb. 23 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened at RMB 15,900/mt, boosted by LME zinc prices overnight, but inched down below the moving average to RMB 15,750-15,850/mt in the afternoon as longs left the market with profit-taking. Finally SHFE three-month zinc contract prices closed at RMB 15,825/mt, up RMB 110/mt. Trading volumes decreased by nearly 90,000 lots to 170,160 lots, and total position decreased by 4,676 lots to 199,196 lots.

In domestic spot markets, spot discounts expanded, with #0 zinc prices RMB 340/mt below SHFE three-month zinc contract prices, and narrowed to RMB 320/mt at noon with falling SHFE zinc prices, with traded prices between RMB 15,450-15,500/mt. #1 zinc was traded between RMB 15,400-15,450/mt. Transactions were brisk in the morning session, but as zinc prices fell, downstream buyers turned cautious, and only traders remained enthusiastic.