SHANGHAI, Apr. 7 (SMM) - SHFE 1307 zinc contracts became the most actively traded contracts today, with prices opening at RMB 14,650/mt today since LME zinc prices overnight closed the day down, and generally fluctuated between RMB 14,610-14,660/mt. As the Shanghai Composite Index pulled down near the end of the trading, SHFE zinc prices dipped to an 8-month low of RMB 14,550/mt, and finally closed at RMB 14,555/mt, down RMB 175/mt or 1.19%. The SHFE/LME zinc price ratio expanded to 7.9, and created an opportunity for imports, so investors bought overseas goods and sold them at home. Trading volumes increased by 36,518 lots, to 89,488 lots, and total positions increased by 23,308 lots to 133,390 lots.
SHFE 1307 zinc contract prices opened low and then fluctuated. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 60-80/mt, with traded prices between RMB 14,480-14,510/mt. #1 zinc prices were between RMB 14,460-14,470/mt. Smelters were mostly holding back due to unprofitable prices, and traders stood on the sidelines due to mixed factors. Downstream buyers purchased modestly given low orders, so overall transactions did not improve.