SMM Daily Review - 2011/9/20 Zinc Market

SHAGNHAI, Sept. 21 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened lower at RMB 16,280/mt, dipping further to RMB 16,175/mt in the morning session, with prices fluctuating below the moving average during the day. Boosted by the rising Shanghai Stock Exchange composite index, SHFE three-month zinc contract prices rallied to the moving average in the afternoon, gaining back some losses to close at RMB 16,285/mt, down RMB 130/mt, or down 0.79%. Trading volumes decreased by over 70,000 lots to 124,662 lots, and total positions decreased by 21,112 lots to 173,160 lots. The market took a mixed attitude towards price trends as zinc prices fluctuated at low levels, keeping transactions muted.

In domestic spot markets, #0 zinc was traded between RMB 16,130-16,150/mt, with discounts of negative RMB 60/mt against SHFE 1111 zinc contract prices. #1 zinc was traded between RMB 16,100-16,130/mt.