SHANGHAI, May 25 (SMM) -- On Thursday, SHFE 1208 zinc contract prices opened lower at RMB 14,750/mt and plunged to a new low for the year at RMB 14,620/mt, and rallied to the moving average as large numbers of buyers entered the market. HSBC released China’s PMI for April, causing concerns to grow. In this context, SHFE three-month zinc contract prices moved between RMB 14,650-14,700/mt during the day, and finally closed at RMB 14,725/mt, down RMB 55/mt.
In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were between RMB 40-60/mt, with traded prices between RMB 14,600-14,630/mt. #1 zinc prices were between RMB 14,550-14,600/mt, but with transactions muted. The market lacked confidence as zinc prices have been falling recently, and downstream buyers only purchase on an as-needed basis, keeping transactions quiet.