SMM Daily Review - 2011/9/21 Zinc Market

SHAGNHAI, Sept. 22 (SMM) -- On Wednesday, SHFE 1112 zinc contracts became the most actively traded, with prices opening at RMB 16,280/mt in the morning session and then dipping to RMB 16,075/mt. Boosted by the Shanghai Stock Exchange composite index, SHFE 1112 zinc contract prices gained back previous looses to close at RMB 16,455/mt, up RMB 120/mt. Trading volumes increased by 140,000 lots to 385,630 lots, and total positions increased by 14,984 lots to 188,496 lots.

In domestic spot markets, #0 zinc was traded between RMB 16,000-16,050/mt in the morning session, with discounts between negative RMB 50-60/mt against SHFE 1111 zinc contract prices. Spot zinc was traded as high as RMB 16,300/mt at noon, with discounts of negative 100/mt against SHFE 1111 zinc contract prices. #1 zinc was traded between RMB 15,950-16,250/mt. The market was active as zinc prices began to rebound, keeping transactions brisk.