SMM Daily Review - 2011/8/2 Zinc Market

SHAGNHAI, Aug. 3 (SMM) -- On Tuesday, SHFE 1110 zinc contract prices opened lower at RMB 18,690/mt, then fell in the morning session, with prices mostly moving between RMB 18,450-18,550/mt during the day. Finally, SHFE 1110 zinc contract prices closed at RMB 18,455/mt, down RMB 405/mt, or down 2.15%. Total positions continued decreasing, with a large number of longs leaving the market. Market players took a mixed attitude as zinc prices fell below RMB 18,500/mt.

SHFE zinc prices opened lower and moved below the moving average in the morning session, and spot zinc prices fell in response. #0 zinc was traded between RMB 18,050-18,100/mt, with discounts of negative RMB 430-450/mt against SHFE 1110 zinc contract prices. #1 zinc was traded around RMB 18,030/mt. Traders were aggressively moving goods, while downstream buyers purchased modestly at lower prices. Spot discounts narrowed to negative RMB 400-420/mt in the afternoon along with dropping SHFE zinc prices, with spot zinc prices quoted around RMB 18,050/mt. But transactions were quiet.

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