SHANGHAI, Jul. 19 (SMM) -- On Wednesday, SHFE 1210 zinc contract prices opened at RMB 14,820/mt, and inched down due to the climbing US dollar index, and then fluctuated between RMB 14,800-14,820/mt. With plunging LME zinc prices, SHFE 1210 zinc contract prices fell sharply and dipped to RMB 14,750/mt, but then rebounded to touch RMB 14,800/mt as the Shanghai Composite Index rose, and finally closed at RMB 14,785/mt, down RMB 45/mt, or 0.3%. Trading volumes decreased by 31,072 lots to 44,718 lots, and total position decreased by 1,820 lots to 146,498 lots.
In domestic spot markets, discounts of #0 zinc were around RMB 100/mt in the morning session, with traded prices between RMB 14,700-14,710/mt. As SHFE zinc prices fell slightly, discounts of #0 zinc narrowed to RMB 90/mt, with traded prices between RMB 14,690-14,700/mt. Imported zinc was traded between RMB 14,650-14,660/mt, and #1 zinc was traded around RMB 14,660/mt. Smelters were actively moving goods in Tianjin due to favorable prices. On the other hand traders in Shanghai also continued to sell goods, with downstream inquiries brisk. But purchases from downstream buyers were limited, with transactions limited.