SHANGHAI, Jan. 18 (SMM) - LME zinc prices overnight rebounded after dipping to a record low at the end of trading. SHFE 1304 zinc contract prices opened at RMB 15,245/mt, touching RMB 15,275/mt and then inching down below moving averages, and then fluctuating narrowly between RMB 15,225-15,240/mt. SHFE 1304 zinc contract prices rebounded after dipping to USD 15,195/mt in the afternoon, but met resistance at RMB 15,265/mt, and finally closed at RMB 15,265/mt, up RMB 20/mt. The price range of SHFE 1304 zinc contract prices was RMB 80/mt during the day, showing investors were very cautious before the release of China’s major economic data. Total position decreased by 1,504 lots to 101,786 lots.
SHFE three-month zinc contract prices fluctuated narrowly. Discounts of #0 zinc against SHFE three-month zinc contract prices remained between RMB 210-230/mt, with traded prices RMB 15,020-15,040/mt. #1 zinc prices were RMB 15,010/mt. Good supply was very tight due to major producers holding goods, and forced some purchasers to switched to imported zinc. Some mainstream brand producers still lacked interest to move goods, and traders stood on the sidelines. Downstream buyers purchased modestly, keeping transactions quiet.