SHANGHAI, Feb.28 (SMM) - The most active SHFE zinc 1305 contract prices opened high at RMB 15,685/mt, and later advanced to hit RMB 15,715/mt due to brief rally of China’s stock market. Due However, SHFE zinc contract quickly fell to RMB 15,660-15,680/mt after finding support at 60-day moving average due to absence of downstream demand. Finally, SHFE zinc contract closed at RMB 15,665/mt, up RMB 90/mt or 0.58% from a day earlier. Trading volumes reduced by 14,590 lots to 59,080 lots. Positions reduced by 4,296 lots to 119,198 lots.
On February 27, SHFE zinc prices advanced Traded prices for #0 zinc in spot market were largely between RMB 15,330-15,340/mt, with spot discounts over the 1305 SHFE zinc contract expanding to RMB 310-320/mt. Traded prices for #1 zinc were in the RMB 15,330-15,340/mt. Smelters were still reluctant to move goods, expanding discounts. Limited traders purchased hedged zinc, but downstream producers still adopted a wait-and-see attitude. Overall transactions reduced from a day earlier.