SHANGHAI, Mar. 12 (SMM) -- Last Friday, SHFE three-month zinc contract prices dipped to the intraday low at RMB 15,765/mt after opening, and rallied to the moving average following LME zinc prices. As China's CPI rose 3.2% in February, in line with market speculations, risk appetite improved. SHFE three-month zinc contract prices edged up to touch RMB 15,905/mt, and finally closed at RMB 15,890/mt, up RMB 170/mt. Trading volumes decreased by 23,704 lots to 148,042 lots, and total position decreased by 6,400 lots to 153,338 lots.
In domestic spot markets, discounts of #0 zinc remained between RMB 230-250/mt against SHFE 1206 zinc contract prices, with traded prices around RMB 15,500/mt. Transactions were mostly made in the morning session. #1 zinc was traded around RMB 15,450/mt. Downstream buying interest was strong initially, but reduced purchases after SHFE zinc prices rose.