SHANGHAI, Mar. 23 (SMM) -- On Thursday, SHFE three-month zinc contract prices opened at RMB 15,750/mt, dragged down by LME zinc prices overnight. Due to lower HSBC China's PMI for March, concerns that domestic demand will improve slowly caused Asian equity markets to plunge. In this context, SHFE three-month zinc contract prices plummeted to RMB 15,650/mt, with prices finally finishing lower at RMB 15,600/mt, down 1.33%.
In domestic spot markets, discounts of #0 zinc were around RMB 250-260/mt against SHFE three-month zinc contract prices, with traded prices around RMB 15,500/mt. Discounts of #0 zinc narrowed to RMB 220-230/mt as SHFE zinc prices fell at noon, and traded prices dropped to RMB 15,420-15,450/mt, with traders actively moving goods. #1 zinc was traded between RMB 15,400-15,450/mt, dip-buying kept transactions brisk.