Metals News
SMM Daily Review - 2009/12/22 Zinc Market
smm insight
10:54AM
Source:SMM

SHANGHAI, Dec. 23 (SMM) -- SHFE zinc prices opened high, and SHFE three-month contract zinc prices soared to RMB 19,300/mt after opening, but later slipped. However, SHFE three-month contract zinc prices recovered rapidly in the afternoon supported by increased purchase volumes after A-share stock and copper prices fell, but finally closed down. Positions declined by more than 11,000 lots, with turnover rate being close to 230%, and trading sentiment was brisk, with most deals mainly made in the afternoon. Technically, zinc prices will continue to fluctuate at high levels.

In spot markets, SMM offers for #0 zinc increased by RMB 150/mt to a range of RMB 18,500-18,600/mt, but transactions were weak at RMB 18,600/mt. #1 zinc was traded around RMB 18,500/mt, with very limited price spread between goods with different brands, and market supply was ample. Inquiries were up in the afternoon, but actual transactions were sluggish. Spot zinc prices fell at a slower pace than SHFE zinc prices in the afternoon, and no smelters reduced prices in an effort to move goods. However, a portion of goods for arbitrage flowed into spot market due to falling zinc prices, but traders still had no profit margins, since no buyers had interest in purchases in the afternoon.

 

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