SHANGHAI, Jul. 13 (SMM) -- On Thursday, SHFE 1210 zinc contract prices opened lower at RMB 14,700/mt, and tumbled to an intraday low at RMB 14,550/mt as large numbers of short were selling off goods. As the Shanghai Composite Index stopped decreases and rebounded slightly, SHFE zinc prices pared some losses, and fluctuated between RMB 14,630-14,660/mt. Finally, SHFE 1210 zinc prices closed at RMB 14,645/mt. Trading volumes increased by 4,130 lots to 87,864 lots, and total position decreased by 1,806 lots to 171,214 lots.
In domestic spot markets, discounts of #0 zinc were around RMB 80/mt, with traded prices around RMB 14,490/mt. Some bold traders arbitraged while downstream buyers purchased actively. As SHFE zinc prices rose, discounts of #0 zinc expanded to RMB 90-100/mt, with traded prices between RMB 14,520-14,550/mt, with transactions limited at the high end of the price band. As prices inched up, the market turned cautious. #1 zinc was traded between RMB 14,470-14,480/mt.