SHANGHAI, Jun. 27 (SMM) -- On Tuesday, SHFE 1210 zinc contract prices opened at RMB 14,570/mt, fluctuating between RMB 14,540-14,620/mt after opening. In the afternoon, SHFE 1210 zinc contract prices plunged along with SHFE aluminum prices, as large numbers of shorts sold off goods, SHFE 1210 zinc contract prices once dipped to RMB RMB 14,255/mt, and rallied slightly to close at RMB 14,315/mt, down RMB 270/mt or 1.85%. Trading volumes increased by over 90,000 lots to 191,762 lots, and total position increased by 40,000 lots to 196,358 lots.
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 14,540-14,550/mt. As SHFE zinc prices fell at noon, discounts of #0 zinc narrowed to RMB 30/mt, with traded prices around RMB 14,520/mt. SHFE zinc prices rallied to RMB 14,550/mt later the day, and #1 zinc was quoted between RMB 14,500-14,520/mt. Transactions were mainly made among traders, while downstream buyers were taking a wait-and-see attitude, and smelters continued to hold goods, leaving transactions muted.