SHANGHAI, Feb. 1 (SMM) - In response to jumping LME zinc prices, SHFE 1305 zinc contract prices opened higher at RMB 16,035/mt, and then fluctuated around RMB 16,005/mt. Due to rising LME zinc prices, SHFE 1305 zinc contract prices touched RMB 16,170/mt, and closed at RMB 16,150/mt, up RMB 245/mt, or 1.54%. Trading volumes of SHFE 1305 zinc contract increased by 41,542 lots, to 192,320 lots, and total position increased by 45,448 lots to 169,930 lots.

SHFE three-month zinc contract prices fluctuated at high levels today, with goods availability low. Discounts of #0 zinc against SHFE 1304 zinc contract prices remained between RMB 300-310/mt, with traded prices between RMB 15,570-15,590/mt. #1 zinc prices were RMB 15,500/mt. Smelters did not increase goods supply noticeably due to optimism, traders sold goods at higher prices, causing goods supply to increase. Downstream buying interest low as spot zinc prices jumped to their highest since April 2012, keeping transactions muted.