SMM Daily Review - 2011/9/23 Zinc Market

SHAGNHAI, Sept. 26 (SMM) -- Last Friday, SHFE three-month zinc contract prices opened lower at RMB 15,450/mt, and plummeted to RMB 15,175/mt, then rebounded to an intraday high RMB 15,555/mt. In the afternoon, SHFE three-month zinc contract prices fell by the limit to RMB 14,980/mt, a new low for this year, and closed at RMB 15,055/mt, down 5.55%. Trading volumes increased by 192,740 lots to 590,264 lots, and total positions increased by 4,364 lots to 214,696 lots.

In domestic spot markets, #0 zinc was traded between RMB 15,300-15,350/mt in the morning session, and with prices rising to RMB 15,350-15,380/mt at noon, close to SHFE 1112 zinc contract prices. #1 zinc was traded between RMB 15,250-15,300/mt. Downstream buying interest was strong, with transactions brisk. Spot prices fell to RMB 15,000/mt in the afternoon along with SHFE zinc prices, leaving the market quiet.