SHANGHAI, Oct. 24 (SMM) -- On Tuesday, SHFE 1301 zinc contract prices opened at RMB 14,895/mt. Despite rising LME zinc prices, the Shanghai Composite Index was still weak, so SHFE 1301 zinc contract prices fluctuated around RMB 14,900/mt in the morning trading. In the midday, the US dollar index rose, pushing down LME zinc prices. The Shanghai Composite Index entered downward track as shorts entered the market. As a result, SHFE 1301 zinc contract prices plunged and finally closed at RMB 14,785/mt, down RMB 175/mt.
In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were around RMB 120/mt, with traded prices between RMB 14,770-14,790/mt. SHFE zinc prices fell in the midday, and discounts were only between RMB 100-110/mt, #0 zinc prices fell in response to RMB 14,730-14,750/mt. #1 zinc prices were around RMB 14,730/mt, with supply tight. Smelters continued to hold onto their goods, but goods supply was still ample due to arbitrage opportunities. Downstream buyers mainly remained cautious in the morning, but as SHFE zinc prices fall further at noon, downstream inquiries increased. Transactions were concentrated at noon, and overall transactions did not improve from the previous day.