SHANGHAI, Jul. 20 (SMM) -- On Thursday, SHFE 1210 zinc contract prices dipped to RMB 14,790/mt after opening as large numbers of shorts sold off goods, and then fluctuated narrowly between RMB 14,800-14,820/mt. At noon, SHFE 1210 zinc contract prices rose along with LME zinc prices and touched RMB 14,870/mt, tracking the Shanghai Composite Index later in the day. Finally, SHFE 1210 zinc contract prices closed at RMB 14,830/mt, up RMB 40/mt, or 0.27%. Trading volumes decreased by 10,250 lots to 34,468 lots, and total position decreased by 4,556 lots to 141,942 lots.
In domestic spot markets, discounts of #0 zinc were around RMB 100-110/mt in the morning session, with traded prices between RMB 14,690-14,720/mt. Imported zinc was traded around RMB 14,650/mt, and #1 zinc was traded between RMB 14,640-14,650/mt. traders lacked arbitrage opportunities as discounts did not expand, while downstream buyers remained cautious. On the other hand, the market preferred imported zinc, causing transactions to improve.