SHANGHAI, Mar. 28 (SMM) - SHFE 1306 zinc contract prices opened slightly lower at RMB 14,870/mt today and then fluctuated around that level. As the Shanghai Composite weakened in the afternoon, and since LME zinc prices also plunged due to a strengthening US dollar index, SHFE 1306 zinc contract prices dropped to RMB 14,850/mt, and finally closed at RMB 14,835/mt, down RMB 135/mt or 0.9%. Trading volumes increased by 20,188 lots, to 54,426 lots, and total positions increased by 2,890 lots to 126,530 lots.
SHFE 1306 zinc contract prices opened low then fluctuated narrowly today. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 150-170/mt, with traded prices around RMB 14,700-14,730/mt. #1 zinc prices were RMB 14,690/mt. Smelters continued to hold goods, while arbitrage traders released some goods due to narrowing spot discounts. But narrowly fluctuating SHFE zinc prices depressed traders, and downstream buyers purchased modestly at lower prices. Overall transactions did not improve.