SHANGHAI, Oct. 29 (SMM) -- Last Friday, SHFE 1301 zinc contract prices opened lower at RMB 14,800/mt, and touched RMB 14,825/mt in the morning trading, and then continued to fluctuate low around RMB 14,750/mt. The Shanghai Composite Index fell below 2,100 and continued to fall during the day. Besides, LME zinc prices only touched the 5-day moving average in the morning trading, and then plunged as shorts entered the market. In this context, SHFE 1301 zinc contract prices fell as soon as opening, and finally closed at RMB 14,645/mt, down RMB 225/mt compared to the previous trading day.

In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were between RMB 110-120/mt, with traded prices between RMB 14,620-14,660/mt. #1 zinc prices were around RMB 14,610/mt, with tight supply. There was some un-known brands of #1 zinc available in the market, with prices RMB 160/mt below #1 zinc prices or even lower, and was popular with downstream buyers. In general, smelters were holding onto their goods, while downstream buying interest improved. As the Shanghai Composite Index fell below 2,100, SHFE three-month zinc contract prices dipped to a one-week low in the afternoon. Mainstream traded prices of #0 zinc fell to RMB 14,580-14,590/mt, and transactions did not improve.