SHANGHAI, Jul. 26 (SMM) -- On Wednesday, SHFE 1211 zinc contract prices opened at RMB 14,460/mt and touched an intraday high at RMB 14,520/mt as SHFE zinc prices rose due to the plummeting US dollar index, and then fluctuated above the moving average. In the afternoon, the US dollar index touched 84.052, pushing down LME zinc prices. As a result, SHFE 1211 zinc contract prices dipped to RMB 14,370/mt, and finally closed at RMB 14,380/mt, down RMB 155/mt or 1.07%. Trading volumes increased by 3,494 lots to 120,934 lots, and total position increased by 14,616 lots to 170,440 lots.
In domestic spot markets, discounts of #0 zinc were around RMB 30/mt in the morning session, with traded prices between RMB 14,420-14,430/mt. As SHFE zinc prices rose, discounts of #0 zinc expanded to RMB 40/mt, with traded prices as high as RMB 14,480-14,490/mt, but transactions limited. Mainstream prices were between RMB 14,450-14,470/mt. Imported zinc was traded between RMB 14,350-14,400/mt, and #1 zinc was traded between RMB 14,350-14,400/mt. Downstream buyers purchased actively in the morning session, but turned cautious as zinc prices rose. The market preferred imported zinc to domestic #1 zinc as their prices were close, keeping transactions of domestic #1 zinc quiet. As SHFE zinc prices fell in the afternoon, #0 zinc prices fell to RMB 14,400/mt, but downstream buying interest remained low.