SHANGHAI, Apr. 19 (SMM) - LME zinc prices overnight closed the day down, so SHFE 1307 zinc contracts prices opened low at RMB 14,260/mt on Thursday. SHFE copper prices fell by the daily limit immediately following opening, and closed the day with declines of daily limit. SHFE zinc prices were weighed down after opening as large number of shorts rushed to the market, dipping to RMB 14,025/mt, a record low last seen in June 2010. But since shorts left the market with profit-taking, SHFE zinc prices touched RMB 14,440/mt, but fell slightly in the afternoon to RMB 14,300/mt, with prices closing at RMB 14,290/mt, down RMB 315/mt or 2.16%. Trading volumes increased by 148,000 lots, to 216,000 lots, and total positions decreased by 4,378 lots to 145,000 lots.
SHFE 1307 zinc contract prices opened low and then dipped to a two-year low. #0 zinc prices were once level with or RMB 20/mt higher than SHFE 1307 zinc contract prices, with traded prices falling to RMB 14,100-14,200/mt. As bargain hunters entered the market after 10:00 am, SHFE zinc prices rose, causing spot discounts of #0 zinc against SHFE 1307 zinc contract prices to expand to RMB 20-40/mt, with traded prices between RMB 14,300-14,340/mt. Transactions of #1 zinc were rarely made due to supply shortfalls. Arbitrage traders were actively moving goods due to narrowing spot discounts, but downstream buying interest was low, keeping overall transactions muted.
