SHANGHAI, Apr. 15 (SMM) - LME zinc prices last Friday rallied after initially dipping. SHFE 1307 zinc contracts prices opened flat at RMB 14,820/mt, and generally moved between RMB 14820-14,840/mt after opening. LME zinc prices plunged at noon, and the Shanghai Composite Index continued to weaken, closing the day with declines of 0.55%, dragging down SHFE zinc prices. As short momentum mounted after opening, SHFE zinc prices lost the 5-day moving average, finding temporary support at the 10-day moving average, and closing at RMB 14,785/mt, down RMB 55/mt or 0.37%. Trading volumes decreased by 7,112 lots, to 45,786 lots, and total positions increased by 3,344 lots to 142,798 lots.
SHFE 1307 zinc contract prices opened flat and then fluctuated. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 80-90/mt, with traded prices between RMB 14,680-14,710/mt. #1 zinc prices were between RMB 14,660-14,670/mt. Weak arbitrage opportunities and fluctuating SHFE zinc prices kept traders standing on the sidelines, while downstream buying interest was low despite the weekend neared, keeping overall transactions muted.
