SMM Daily Review - 2010/1/14 Zinc Market

SHANGHAI, Jan. 15 (SMM) -- SHFE zinc prices slipped rapidly after opening high, with positions down slightly continuously. SHFE three-month contract zinc prices advanced to RMB 20,965/mt, but dipped to RMB 20,520/mt at noon, and later rebounded and closed at RMB 20,610/mt finally. SHFE 1005 zinc contract closed at RMB 20,800/mt, with positions up more than 6,000 lots.

In the spot zinc market, SMM offers for #0 zinc were RMB 20,150-20,250/mt, and spot zinc prices showed stronger performance even when SHFE zinc prices slipped during the spot trading period. #1 zinc was traded around RMB 20,100/mt, while #0 zinc was traded at RMB 20,150/mt. Although the trading sentiment was slim, downstream consumers preferred to increase purchased volumes until spot zinc prices fell below RMB 20,000/mt. However, smelters and traders were full of confidence in the support level of RMB 20,000/mt due to their optimistic future market outlook.

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