SHANGHAI, Jul. 12 (SMM) -- On Wednesday, SHFE 1210 zinc contract prices opened lower at RMB 14,645/mt, and inched up after opening, but fluctuated between RMB 14,640-14,660/mt later in the day. The US dollar index rose at noon, pushing down SHFE zinc prices to fall below the moving average. In the afternoon, climbing LME zinc prices boosted SHFE zinc prices slightly, and SHFE zinc prices fluctuated below the moving average. At the end of trading, SHFE 1210 zinc prices gained back some losses and finally closed at RMB 14,655/mt, down RMB 70/mt or 0.48%. Trading volumes decreased by 5,458 lots to 83,734 lots, and total position increased by 2,202 lots to 173,020 lots.
In domestic spot markets, discounts of #0 zinc were around RMB 80-90/mt, with traded prices between RMB 14,570-14,590/mt. Due to quiet transactions, discounts of #0 zinc expanded to RMB 100/mt. #1 zinc was traded between RMB 14,470-14,500/mt. Transactions were made actively near the end of the morning session due to lower prices, but purchases from downstream buyers were still sluggish, with transactions muted.