SHANGHAI, Mar. 7 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,970/mt, and then fell below the moving average later in the day. In the afternoon, SHFE three-month zinc contract prices dipped to RMB 15,720/mt following LME zinc prices overnight, and finally closed at RMB 15,760/mt, down RMB 290/mt. Large numbers of shorts entered the market actively. Trading volumes decreased by 48,604 lots to 131,060 lots, and total position decreased by 8,296 lots to 148,190 lots.
In domestic spot markets, discounts of #0 zinc were between RMB 250-270/mt, with traded prices between RMB 15,600-15,650/mt. discounts narrowed to RMB 230/mt as SHFE zinc prices fell, with transactions limited, and #1 zinc was traded between RMB 15,500-15,550/mt. downstream buyers were cautious until zinc prices stabilize, while traders moved goods actively, but the overall transactions were muted. Spot discounts remained at RMB 230/mt in the afternoon, and zinc prices fell around RMB 15,500/mt, causing downstream buying interest to improve.