SHANGHAI, Mar. 21 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,925/mt and touched RMB 15,970/mt in the morning session, and plummeted below the 5-day moving average as large numbers of shorts sold goods. As LME zinc prices surged at the end of trading, SHFE three-month zinc contract prices rallied to close at RMB 15,885/mt, up RMB 15/mt. Trading volumes increased by nearly 60,000 lots to 180,810 lots, and total position decreased by 3,964 lots to 157,688 lots.

In domestic spot markets, discounts of #0 zinc were around RMB 300/mt against SHFE three-month zinc contract prices, with traded prices between RMB 15,580-15,600/mt. As SHFE zinc prices dropped, spot discounts narrowed to RMB 270-280/mt, with traded prices around RMB 15,550/mt. #1 zinc was traded between RMB 15,450-15,470/mt. Spot discounts expanded as SHFE zinc prices rose in the afternoon, with discounts of #0 zinc around RMB 350/mt against SHFE three-month zinc contract prices, but with transactions quiet.