SHANGHAI, Jun. 14 (SMM) -- On Wednesday, SHFE 1209 zinc contract prices opened at RMB 14,805/mt and plummeted to an intraday low of RMB 14735/mt after opening, and then fluctuated around the 5-day moving average. As the Shanghai Composite Index rose in the midday, SHFE 1209 zinc contract prices rose to struggle at the 20-day moving average, but failed to break through that level. As the end of trading, as the US dollar index weakened, SHFE 1209 zinc contract prices were up slightly to RMB 14,850/mt, and finally closed at RMB 14,820/mt, up RMB 70 or 0.47%. Trading volumes increased by 462 lots to 54,614 lots, and total position increased by 1,106 lots to 168,946 lots.
In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were RMB 60-90/mt, with traded prices between RMB 14,680-14,700/mt. #1 zinc was quoted between RMB 14,640-14,680/mt, with transactions muted. Smelters only supplied for long-term contract due to lower-than-cost prices, and traders lacked arbitrage room due to narrow price spread between futures and spot prices, and downstream buying interest was also low due to the lack of confidence and sluggish orders, all leaving transactions modest.