SHANGHAI, Oct. 18 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened at RMB15, 190/mt, and fell in the morning trading, and then dipped to RMB 15,065/mt, dragged down by the Shanghai Composite Index. Despite the Shanghai Composite Index rose in the midday, SHFE three-month zinc contract prices continued to fall, and fluctuated between RMB 15,105-15,135/mt in the afternoon due to low buying interest of longs. Finally, SHFE three-month zinc contract prices closed at RMB 15,120/mt, with resistance at the 5-day moving average.
In domestic spot markets, discounts of #0 zinc were between RMB 150-180/mt, with traded prices between RMB 14,970-14,980/mt. As SHFE zinc prices plummeted, spot discounts narrowed to RMB 130-150/mt, with traded prices around RMB 14,950/mt. #1 zinc prices were around RMB 14,900/mt. The overall transaction improved from the previous day as downstream buyers entered the market so as to maintain production. In the afternoon, spot prices rose to RMB 14,970-14,980/mt along with SHFE zinc prices, but with transactions were quieter than the morning trading.