SHANGHAI, Mar. 29 (SMM) - SHFE 1306 zinc contract prices opened slightly higher at RMB 14,885/mt today. It was reported China's central bank would repurchase RMB 30 billion today, with net withdrawal of RMB 57 billion this week. Besides, new regulations to bank financial products dragged down securities and financial shares. The Shanghai Composite index opened low, and SHFE zinc prices plunged to RMB 14,850/mt. In the afternoon, SHFE 1306 zinc contract prices dropped further along with falling LME zinc prices, to RMB 14,810-14,820/mt, and finally closed at RMB 14,800/mt, down RMB 60/mt or 0.4%. Trading volumes decreased by 18,986 lots, to 35,440 lots, and total positions decreased by 3,224 lots to 123,306 lots. Total positions of SHFE 1307 zinc contracts increased by 4,866 lots, to 94,708 lots.
SHFE 1306 zinc contract prices opened higher but plunged later in the day. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 130-150/mt, with traded prices around RMB 14,700-14,720/mt. #1 zinc prices were RMB 14,680/mt. Smelters continued to hold goods, and some of them cut zinc ingot output, and purchase zinc ingot to produce zinc alloy. Downstream buying interest was low due to negative situations, keeping overall transactions did not improve.