SHANGHAI, Oct. 12 (SMM) -- On Thursday, SHFE 1301 zinc contract prices opened slightly lower at RMB 15,310/mt and moved between RMB 15,250-15,300/mt in the morning trading, and then surged to RMB 15,300/mt in tandem with LME zinc prices. As large numbers of longs entered the market in the midday, SHFE 1301 zinc contract prices touched RMB 15,410/mt but fell later. As longs left the market in the afternoon, SHFE 1301 zinc contract prices inched down and finally closed at RMB 15,320/mt, down RMB 50/mt.
In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices expanded to RMB 200/mt, with traded prices around RMB 15,100/mt. As SHFE zinc prices rose, spot discounts expanded to RMB 240-250/mt, with traded prices around RMB 15,150/mt. #1 zinc prices were between RMB 15,040-15,100/mt. Downstream buyers were cautious since they had purchased the previous day, with transactions quiet.