SHANGHAI, Apr. 22 (SMM) - As LME zinc prices overnight rallied after bottoming out, SHFE 1307 zinc contracts prices opened high at RMB 14,410/mt last Friday, and then fluctuated between RMB 14,370-14,390/mt. As bargain hunters entered the market, SHFE zinc prices were pushed up, but met resistance at RMB 14,500/mt. The Shanghai Composite Index soared and closed the day up 2.14%, pushing up SHFE zinc prices to touch RMB 14,600/mt, with prices closing at RMB 14,575/mt, up RMB 325/mt or 2.28%. Trading volumes decreased by 106,000 lots, to 110,000 lots, and total positions decreased by 13,148 lots to132,000 lots.
SHFE 1307 zinc contract prices opened high and moved higher. Spot discounts of #0 zinc against SHFE 1307 zinc contract prices were between RMB 60-80/mt, with traded prices initially around RMB 14,320/mt, and then inching up to RMB 14,390-14,420/mt. Transactions of #1 zinc were rarely made, with prices between RMB 14,370-14,400/mt. Due to falling prices and since today is the last trading day of the week, some downstream buyers and arbitrage traders purchased at lower prices earlier in the day. But since SHFE copper prices plunged and closed with declines of 1.39%, the market turned cautious. Overall transactions barely improved from the previous day.
