SHANGHAI, Jul. 18 (SMM) -- On Tuesday, SHFE 1210 zinc contract prices opened higher at RMB 14,850/mt, and inched down as large numbers of shorts entered the market, and then rebounded slightly to the moving average. SHFE 1210 zinc contract prices fell further in the afternoon and dipped to RMB 14,755/mt as increasing shorts rushed to the market. Since the shorts left the market with profit-taking, SHFE 1210 zinc contract prices gained back some losses and finally closed at RMB 14,800/mt. Trading volumes increased by 6,552 lots to 75,790 lots, and total position decreased by 12,270 lots to 148,000 lots.
In domestic spot markets, discounts of #0 zinc were around RMB 120/mt, with traded prices between RMB 14,740-14,750/mt. As SHFE zinc prices fell slightly, discounts of #0 zinc narrowed to RMB 100-110/mt, with traded prices between RMB 14,710-14,730/mt. SHFE zinc prices dropped further in the afternoon, but discounts of #0 zinc remained unchanged, with traded prices between RMB 14,680-14,700/mt. Imported zinc was highly available in the market and had an advantage in price, polular with downstream buyers. But purchases from downstream buyers were limited, while traders moved goods actively, with transactions limited.
