SHANGHAI, Feb. 22 (SMM) – The most active SHFE zinc contract opened slightly lower at RMB 15,885/mt due to overnight LME zinc price decline. Later, SHFE zinc prices were weighed down to struggle around RMB 15,700/mt. During the Asian stock market, China’s stock market plunged to lose support at 20-day moving average and 30-day moving average, down 2.97%, paring early gains. At the tail of the trading, SHFE zinc prices extended losses to lose support at RMB 157,000/mt and hit a low at RMB 15,525/mt. Later, SHFE zinc prices regained some losses to close at RMB 15,640/mt, down RMB 260/mt from a day earlier. Trading volumes increased by 65,518 lots to 187,662 mt. Positions increased by 32,182 lots to 139,248 lots.
Traded prices for #0 zinc in spot market were largely between RMB 15,390-15,410/mt, with spot discounts over the 1305 SHFE zinc contract between RMB 290-310/mt. Traded prices for #1 zinc were in the RMB 15,330-15,350/mt. SHFE zinc prices plunged, narrowing spot discount, which facilitated outflow of arbitrage goods. Supply of goods was relatively ample in market. In this context, supply of goods was relatively ample. Dip buying from downstream produces also increased, improving transactions. However, as downstream producers did not fully resumed production, downstream demand was still considered weak.