SHANGHAI, Jul. 5 (SMM) -- On Wednesday, SHFE 1210 zinc contract prices opened at RMB 14,890/mt, and rose to RMB 14,915/mt, affected by the falling US dollar index, and fluctuated between RMB 14,850-14,890/mt. In the midday, SHFE 1210 zinc contract prices dipped to RMB 14,765/mt due to the falling Shanghai Composite Index. In the afternoon, SHFE 1210 zinc contract prices gained back some losses and fluctuated between RMB 14,810-14,840/mt as the US dollar index was weak, and finally closed at RMB 14,830/mt, up RMB 20/mt, or 0.14%. Trading volumes decreased by 36,402 lots to 128,814 lots, and total position decreased by 6,606 lots to 174,956 lots.
In domestic spot markets, discounts of #0 zinc against SHFE 1210 zinc contract prices were between RMB 120-130/mt, with traded prices between RMB 14,740-14,750/mt. Discounts of spot goods narrowed to RMB 90-100/mt as SHFE zinc prices fell, with traded prices down to RMB 14,690-14,700/mt. #1 zinc was quoted between RMB 14,620-14,700/mt. Downstream buyers purchased as needed, despite falling prices in the midday. High discounts allowed traders to buy in the morning session, but they turned cautious due to narrowing discounts, with transactions muted.
