SHANGHAI, Oct. 22 (SMM) -- Last Friday, SHFE 1301 zinc contract prices opened at RMB 15,195/mt, and were weighed down after touching RMB 15,210/mt due to the falling LME zinc prices. SHFE 1301 zinc contract prices once stabilized between RMB 15,130-15,150/mt in the morning session, but lacked momentum to rise as large numbers of shorts entered the market. In the midday, the Shanghai Composite Index plummeted, so SHFE 1301 zinc contract prices once dipped to RMB 15,045/mt and finally closed at RMB 15,065/mt, down RMB 170/mt.
In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices remained between RMB 160-180/mt despite falling SHFE three-month zinc contract prices, with traded prices between RMB 14,980-15,000/mt. As SHFE zinc prices inched down, #0 zinc prices fell in response to RMB 14,930-14,950/mt. #1 zinc prices were between RMB 14,900-14,920/mt. Spot discounts narrowed slightly due to the falling SHFE zinc prices, allowing traders to arbitrage actively. But spot discounts did not narrow sharply due to ample goods supply, with transactions improving.