SHANGHAI, Mar. 1 (SMM) - LME zinc prices overnight dipped by USD 23.5/mt. SHFE 1305 zinc contract prices opened RMB 35/mt lower at RMB 15,635/mt, and were generally resistant to declines. Despite the Shanghai Composite leaped 2.26%, investor confidence did not improve. With strong short momentum, SHFE 1305 zinc contract prices fluctuated between RMB 15,660-15,680/mt, and closed at RMB 15,665/mt, down RMB 15/mt, or 0.1%. Trading volumes of SHFE 1305 zinc contract decreased by 8,342 lots, to 50,708 lots, and total position decreased by 7,822 lots to 111,376 lots.
SHFE three-month zinc contract prices opened lower and then inched down today. Discounts of #0 zinc against SHFE 1305 zinc contract prices narrowed to RMB 300/mt, with traded prices between RMB 15,350-15,370/mt. #1 zinc prices were RMB 15,300-15,320/mt. Some smelters continued to hold onto their goods, but as arbitrage traders released goods due to narrowing spot discounts, goods supply was sufficient. Downstream buyers took a wait-and-see attitude, keeping transactions muted.