SHANGHAI, Jul. 11 (SMM) -- On Tuesday, SHFE 1210 zinc contract prices opened higher at RMB 14,705/mt, and inched up with LME zinc prices to touch an intraday high RMB 14,790/mt, and then fell to move between RMB 14,740-14,760/mt. In the afternoon, SHFE 1210 zinc contract prices fell along with LME zinc prices, as large numbers of shorts entered the market, SHFE 1210 zinc contract prices rolled back previous gains and finally closed at RMB 14,650/mt, down RMB 50/mt or 0.34%. Trading volumes decreased by 18,228 lots to 89,192 lots, and total position increased by 1,874 lots to 170,818 lots.
In domestic spot markets, discounts of #0 zinc were around RMB 120/mt, with traded prices between RMB 14,640-14,650/mt. As SHFE zinc prices fell, discounts of #0 zinc narrowed to RMB 110/mt, with traded prices between RMB 14,620-14,630/mt. #1 zinc was quoted between RMB 14,580-14,610/mt. Imported zinc was traded prices between RMB 14,600-14,610/mt, Purchases for #1 zinc were sluggish as imported zinc prices were close to #1 zinc prices. Downstream buyers purchased as needed, despite massive arbitrage operation due to expanding discounts, transactions were muted.