SHANGHAI, Oct. 17 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,160/mt, and touched RMB 15275/mt in the morning session due to the rising LME zinc prices. But since the Shanghai Composite Index fell in the afternoon, SHFE three-month zinc contract prices met resistance and fluctuated between RMB 15,245-15,265/mt. LME zinc prices were then pushed down by shorts and SHFE three-month zinc contract prices plunged in response and finally closed at RMB 15,195/mt, up RMB 25/mt.
In domestic spot markets, discounts of #0 zinc were between RMB 180/mt, with traded prices between RMB 15,000-15,020/mt. As SHFE zinc prices continued to rise, spot discounts expanded to RMB 210/mt, and traded prices were pushed up to RMB 15,050/mt. #1 zinc prices were around RMB 15,000/mt, nearly #0 zinc prices. Goods supply available in the market was ample, and downstream buying interest was low, with transactions muted.