SHANGHAI, Mar. 6 (SMM) - The Shanghai Composite Index ended the day 2.33% higher at 2,326.31 points on Tuesday, recovering most of the losses incurred yesterday. During Asian trading hours, LME zinc staged a strong rebound, giving a lift to SHFE zinc prices. SHFE 1306 zinc contracts, the most active one, started slightly lower at RMB 15,400/mt, but later trended up, moving in the range of RMB 15,435-15,460/mt in the morning session. SHFE 1306 zinc contract prices advanced further to RMB 15,520/mt near the end of the morning trading as longs jumped in, and fluctuated within RMB 15,485-15,500/mt in the afternoon. Finally, SHFE zinc for June delivery finished RMB 55/mt or 0.36% higher at RMB 15,485/mt. Trading volumes decreased 18,484 lots to 72,024 lots, while positions increased 4,168 lots to 96,938 lots.
SHFE three-month zinc contract prices drifted higher after opening slightly lower on Tuesday. Mainstream traded prices for #0 zinc were RMB 15,080-15,110/mt, with discounts over SHFE 1305 zinc contract prices at RMB 230-250/mt. #1 zinc was traded at RMB 15,050-15,080/mt. Smelters continued to hold back goods, with most seldom moving goods except for long-term contracts. Most of the goods available on the markets were supplied by traders. Zinc prices stopped falling for the moment, slightly improving downstream buying interest. Most downstream producers were cautious, so overall trading was up only marginally.