SHANGHAI, Jul. 4 (SMM) -- On Tuesday, SHFE 1210 zinc contract prices opened lower at RMB 14,710/mt, and surged to RMB 14,880/mt, boosted by the Shanghai Composite Index, and fell slightly near the end of the morning session. In the afternoon, SHFE 1210 zinc contract prices fluctuated high with SHFE copper prices, but fell slightly at the end of trading, below the moving average. Finally, SHFE 1210 zinc contract prices closed at RMB 14,850/mt, up RMB 155/mt, or 1.05%. Trading volumes increased by 21,110 lots to 144,106 lots, and total position decreased by 3,090 lots to 181,562 lots.
In domestic spot markets, discounts of #0 zinc against SHFE 1210 zinc contract prices were around RMB 100/mt, with traded prices between RMB 14,680-14,700/mt. Discounts of spot goods expanded to RMB 120-130/mt in the morning session as SHFE zinc prices rose but spot prices resisted increases, and #0 zinc prices were between RMB 14,700-14,720/mt. #1 zinc was quoted between RMB 14,640-14,680/mt. Downstream buying interest was low. Some traders won arbitrage opportunity, while some smelters released some spot goods due to higher prices.