SHANGHAI, Jul. 6 (SMM) -- On Thursday, SHFE 1210 zinc contract prices opened at RMB 14,835/mt, and rose to an intraday high at RMB 14,880/mt, and then fluctuated narrowly. In the midday, SHFE 1210 zinc contract prices plummeted due to falling LME zinc prices and rose slightly later. In the afternoon, SHFE 1210 zinc contract prices dipped to RMB 14,760/mt and then edged up with support from the 5-day moving average, as the US dollar index plummeted near the end of trading, SHFE 1210 zinc contract prices gained back some losses and finally closed at RMB 14,850/mt, up RMB 15/mt, or 0.1%. Trading volumes decreased by 38,368 lots to 90,446 lots, and total position decreased by 2,984 lots to 171,972 lots.
In domestic spot markets, discounts of #0 zinc against SHFE 1210 zinc contract prices were between RMB 110-120/mt, with traded prices between RMB 14,730-14,760/mt. Spot prices fell sharply along with SHFE zinc prices, but due to sluggish downstream buying interest, discounts of spot goods did not narrow, with traded prices between RMB 14,700-14,720/mt. #1 zinc was quoted between RMB 14,630-14,660/mt. Downstream buyers took a wait-and-see attitude due to the lack of confidence, while traders did not purchase as actively as the previous day, with transactions muted.