SHANGHAI, Mar. 21 (SMM) - The Shanghai Composite rose by 2.62% today, and LME zinc prices opened flat and inched up during Asian trading hours, both boosting SHFE zinc prices. SHFE 1306 zinc contract prices opened slightly lower, at RMB 14,810/mt today, and then edge up to RMB 14,900-14,920/mt. Near the end of trading, SHFE 1306 zinc contract prices were pulled up as large numbers of shorts closed positions, and finally closed at RMB 14,930/mt, up RMB 45/mt, or 0.3%. Trading volumes decreased by 7,164 lots, to 66,904 lots. Total positions decreased by 2,164 lots to 137,310 lots.
SHFE 1306 zinc contract prices opened lower and then rallied today. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 170-180/mt, with traded prices around RMB 14,720-14,730/mt. #1 zinc prices were RMB 14,690-14,700/mt. Smelters were still holding goods, while arbitrage traders sold goods. Narrowly fluctuating prices kept traders on the sidelines, and downstream purchases contracted due to low orders, keeping overall transactions muted.