SHANGHAI, Jan. 14 (SMM) - LME zinc prices last Friday plunged at the end of trading. SHFE 1304 zinc contract prices opened higher at RMB 15,580/mt. China's December PPI was up -1.9%, while CPI was up 2.5%, in line with expectations, and failing to boost market sentiment. Besides, as both LME zinc prices and the Shanghai Composite dropped, SHFE 1304 zinc contract prices fell after touching RMB 15,605/mt in the morning trading, down to RMB 15,535/mt. In the afternoon, LME zinc prices and the Shanghai Composite extended losses, and combined with mounting short momentum, SHFE 1304 zinc contract prices plummeted further to RMB 15,465/mt, and finally closed at RMB 15,455/mt, down RMB 10/mt. Total position decreased by 2194 lots to 92,120 lots.
SHFE three-month zinc contract prices opened higher. Discounts of #0 zinc against SHFE three-month zinc contract prices expand to RMB 350-370/mt, with traded prices between RMB 15,210-15,230/mt. Spot discounts of #0 zinc then narrowed to RMB 330/mt due to falling SHFE zinc prices, and traded prices were down to RMB 15,200-15,210/mt. #1 zinc prices were RMB 15,170-15,180/mt. Smelters still lacked interest to move goods, but traders were actively selling goods, leading to ample goods supply. But downstream buyers were still cautious, keeping overall transactions muted.