SHANGHAI, Mar. 4 (SMM) - As LME zinc prices overnight plunged, SHFE 1305 zinc contract prices opened lower at RMB 15,560/mt, and then generally moved between RMB 15,520-15,535/mt. Since China’s February PMI fell to 50.1, LME zinc prices dipped to USD 2,056.8/mt. Investor confidence was depressed, and short momentum thus strengthened. SHFE three-month zinc contract prices struggled around RMB 15,445/mt near the end of the morning trading, and closed at RMB 15,460/mt, down RMB 195/mt, or 1.25%. Trading volumes of SHFE 1305 zinc contract decreased by 5,266 lots, to 45,442 lots, and total position decreased by 7,162 lots to 104,214 lots.
SHFE three-month zinc contract prices opened lower and then fluctuated today, slumping near the end of the trading. Discounts of #0 zinc against SHFE 1305 zinc contract prices were RMB 250-280/mt, with traded prices between RMB 15,220-15,250/mt. #1 zinc prices were RMB 15,150-15,190/mt. Smelters continued to hold onto their goods, but arbitrage traders released goods as spot discounts narrowed by RMB 20-50/mt. Downstream buyers took a wait-and-see attitude, keeping transactions muted.