SHANGHAI, Jan. 10 (SMM) - LME zinc prices overnight plunged and then stopped falling at the end of trading, and rebounded slightly, but closed with declines. SHFE 1304 zinc contract prices opened at RMB 15,405/mt, falling immediately after touching RMB 15,470/mt in the morning trading. As long momentum mounted, SHFE 1304 zinc contract prices inched up to RMB 15,450/mt. As the Shanghai Composite entered downward track in the afternoon, SHFE 1304 zinc contract prices fell to RMB 15,420/mt, and then dipped to RMB 15,400/mt, and finally closed at RMB 15,415/mt, down RMB 50/mt. Total position increased by 1,600 lots to 91,416 lots.
SHFE three-month zinc contract prices fluctuated today. Discounts of #0 zinc against SHFE three-month zinc contract prices were RMB 300-320/mt, with traded prices between RMB 15,120-15,140/mt. #1 zinc prices were RMB 15,090-15,100/mt. Goods supply was tight. A few smelters still lacked interest to move goods, while arbitrage traders released goods due to narrowing spot discounts, leading to sufficient goods supply. Although the demand to replenish stocks leading up to Chinese New Year holiday, downstream buyers were still cautious due to unacceptable prices, keeping overall transactions muted.