SHANGHAI, Jan. 17 (SMM) - LME zinc prices overnight stopped falling and rallied at the end of trading, but closed with declines. SHFE 1304 zinc contract prices opened at RMB 15,225/mt, inching up in the morning trading and touching RMB 15,300/mt. But with strong resistance at the 60-day moving average, SHFE 1304 zinc contract prices inched down. As the Shanghai Composite remained weak and since short momentum soared, SHFE 1304 zinc contract prices dipped to an intraday low of RMB 15,170/mt but found support at RMB 15,200/mt. Finally, SHFE 1304 zinc contract prices rebounded at the end of trading and closed at RMB 15,265/mt, down RMB 15/mt or 1.56%. Total position decreased by 7,548 lots to 103,290 lots.
SHFE three-month zinc contract prices edged up today. Discounts of #0 zinc against SHFE three-month zinc contract prices narrowed to RMB 220-240/mt, with traded prices rising from RMB 15,030/mt, to RMB 15,050/mt. SHFE zinc prices fluctuated narrowly at noon, and #0 zinc prices were RMB 15,040-15,050/mt, and #1 zinc prices were RMB 15,010/mt. Good supply was still tight, and some mainstream smelters were still holding goods. A limited number of traders purchased in the morning at lower prices, and downstream buyers also bought goods modestly. As pessimism mounted, a wait-and-see attitude permeated in the market, keeping transactions quiet.