SHANGHAI, Oct. 19 (SMM) -- On Thursday, SHFE three-month zinc contract prices opened at RMB15, 205/mt, and touched RMB 15,275/mt in the morning trading as some longs entered the market. But since China’s 3Q GDP was 7.4%, lower than forecasts, SHFE zinc prices were pushed down and moved between RMB 15,200-15,250/mt during the day. At the end of trading, SHFE three-month zinc contract prices fell below the moving average and closed at RMB 15,210/mt, up RMB 90/mt.
In domestic spot markets, discounts of #0 zinc were between RMB 190-200/mt, with traded prices between RMB 15,020-15,050/mt. #1 zinc prices were RMB 15,000-15,020/mt due to tight supply. Downstream buyers took a wait-and-see attitude since they had built stocks the previous day, and traders lacked arbitrage opportunity as spot discounts did not expand, with transactions muted.