SHANGHAI, Jan. 21 (SMM) - LME zinc prices last Friday soared by 1.21%. SHFE 1304 zinc contract prices opened higher at RMB 15,370/mt, generally fluctuating between RMB 15,360-15,380/mt in the morning trading. In the afternoon, as both LME zinc prices and domestic stocks markets climbed, SHFE 1304 zinc contract prices inched up and touched RMB 15,430/mt, and finally closed at RMB 15,420/mt, up RMB 180/mt or 1.18%. Trading volumes increased by 6,430 lots, to 68,160 lots, and total position decreased by 8,470 lots to 93,316 lots.
SHFE three-month zinc contract prices fluctuated narrowly after opening higher. Discounts of #0 zinc against SHFE three-month zinc contract prices expanded to RMB 250-270/mt, with traded prices RMB 15,110-15,130/mt. #1 zinc prices were around RMB 15,080/mt. Good supply increased slightly, but a few smelters continued to hold goods. Traders sold goods actively, but arbitrage traders lacked opportunities due to narrow spot discounts. As downstream buyers remained cautious , transactions were quiet.
