SHANGHAI, Jan. 23 (SMM) - SHFE 1304 zinc contract prices opened flat at RMB 15,385/mt, and soared immediately following opening, but met resistance at the 20-day moving average, struggling around RMB 15,425/mt. Bank of Japan agreed to further loosen monetary policies, pulling up LME zinc prices. As a result, SHFE 1304 zinc contract prices rebounded in the afternoon and touched RMB 15,500/mt, and closed at RMB 15,485/mt, up RMB 100/mt, or 0.65%. Trading volumes increased by 9,438 lots, to 57,412 lots.
SHFE three-month zinc contract prices inched up. Discounts of #0 zinc against SHFE three-month zinc contract prices expanded to RMB 260-270/mt, with traded prices between RMB 15,140-15,150/mt and edging up to RMB 15,160-15,170/mt later in the day. #1 zinc prices were around RMB 15,120/mt. Traders lacked buying interest, while downstream demand was also soft, keeping transactions quiet.