SHANGHAI, Jun. 11 (SMM) -- Last Friday, SHFE 1209 zinc contract prices opened lower at RMB 14,750/mt and plunged to an intraday low RMB 14,685/mt with plummeting Shanghai Composite Index, despite China's central bank lowered interest rates. With strong support, SHFE 1209 zinc contract prices pared some losses and moved between RMB 14,700-14,750/mt, and finally closed at RMB 14,710/mt, down RMB 85/mt or 0.57%. Trading volumes decreased by 2,632 lots to 82,958 lots, and total position decreased by 3,188 lots to 170,578 lots.
In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were RMB 100/mt, with traded prices between RMB 14,670-14,690/mt. As SHFE zinc prices plunged, discounts of #0 zinc narrowed to RMB 70-90/mt, with traded prices between RMB 14,650-14,660/mt. #1 zinc was quoted between RMB 14,610-14,650/mt, but transactions were muted. Imported zinc prices were RMB 30-50/mt below most domestic #0 zinc prices, but transactions were limited. The market was more cautious despite interest rates decreases, and traders were moving goods actively, while downstream buyers only purchased as needed, leaving transactions modest.