SHANGHAI, Apr. 16 (SMM) – With the LME market closed, SHFE zinc prices gained momentum and opened at the 10-day moving average on Monday, even briefly touching RMB 15,780/mt. However, as shorts sold off goods, SHFE zinc prices gave back intraday gains. Dragged down by lower overnight LME zinc prices, SHFE zinc prices opened lower on Wednesday, but resisted further declines as buyers entered the market. Boosted by a rising Shanghai Composite Index, SHFE three-month zinc contract prices rallied to RMB 15,500/mt last Thursday.
In domestic spot markets, discounts against SHFE three-month zinc contract prices were above RMB 300/mt early in the week, but fell to as low as RMB 180/mt as SHFE zinc prices fell near RMB 15,200/mt. Goods available in the market were modest ahead of the delivery date, so some traders purchased at lower prices.
In this coming week, SHFE zinc prices should also move between RMB 15,200-15,800/mt, with spot discounts of RMB 200-400/mt against SHFE three-month zinc contract prices.