SHANGHAI, Jul. 9 (SMM) -- European central bank lowered interest rates as expected, and China's central bank lowered deposit and loan interest rates unexpectedly, a reading that central banks' concerns over economy improve. Last Friday, SHFE 1210 zinc contract prices opened lower at RMB 14,790/mt, and inched down as large numbers of shorts sold off, and fluctuated between RMB 14,650-14,700/mt during the day. As the Shanghai Composite Index rose near the end of trading, SHFE 1210 zinc contract prices rallied and finally closed at RMB 14,740/mt, down RMB 85/mt.
In domestic spot markets, spot prices fell along with SHFE zinc prices, but spot discounts did not narrow. Discounts of #0 zinc were between RMB 90-100/mt, with traded prices between RMB 14,580-14,630/mt. #1 zinc was quoted between RMB 14,530-14,550/mt. Purchases and inquiries from downstream buyers increased as zinc prices fell and due to the need to produce, and some smelters kept moving goods, allowing transactions to improve.
