SHANGHAI, Jan. 5 (SMM) -- SHFE zinc prices continued to open high and move higher, hitting new highs constantly. SHFE 1004 zinc contract opened at RMB 21,405/mt, hitting RMB 21,705/mt, and kept moving above daily moving averages, with positions up 9,156 lots. However, SHFE 1004 zinc contract was negatively affected by plunged A-share stock market before closing, with a growth rate down from 2% to 1%. SHFE spot-month contract zinc prices also headed for RMB 21,000/mt, and moved higher in the morning.
In spot markets, SMM offers for #0 zinc were RMB 20,500-20,600/mt, up RMB 250/mt compared with the level on December 31st, 2009, but market optimism remained strong, with offers firm. Offers for #1 zinc were RMB 20,600/mt, helping set the lowest traded prices for spot zinc. In this context, #0 zinc was traded around RMB 20,650/mt, while well-known smelters were uneager to move goods on the first trading day of 2010, limiting market supply. Although downstream consumers adopted a wait-and-see attitude toward spot zinc prices above RMB 20,000/mt, zinc prices will remain on an upward track.
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