SHANGHAI, Mar. 29 (SMM) -- SHFE three-month zinc contract prices opened at RMB15,600/mt on Wednesday, surging to the 5-day moving average and moved between RMB 15,600-15,650/mt after opening. In the afternoon, SHFE three-month zinc contract prices plunged below RMB 15,500/mt, dragged down by the Shanghai Composite Index, and finally closed at RMB 15,455/mt, down RMB 145/mt or 0.93%. Trading volumes decreased by over 20,000 lots to 171,478 lots, and total position decreased by 3,748 lots to 187,494 lots. Positions of SHFE 1207 zinc contract increased by 21,562 lots to 142,338 lots.
In domestic spot markets, discounts of #0 zinc were between RMB 240-260/mt, with traded prices between RMB 15,350-15,400/mt, and #1 zinc was traded between RMB 15,300-15,350/mt. Traders were unwilling to purchase, while downstream buyers were still cautious, keeping transactions muted. Spot discounts narrowed to RMB 200/mt in the afternoon as SHFE zinc prices plunged, and dip-buying was rarely reported due to the lack of confidence.