SMM Daily Review - 2011/11/30 Zinc Market

SHAGNHAI, Dec. 1 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened slightly higher at RMB 15,300/mt, and then inched down in the morning session to RMB 15,200/mt. Dragged down by the Shanghai Composite Index, SHFE three-month zinc contract prices dipped to RMB 15,060/mt, and rallied to close at RMB 15,115/mt, down RMB 115/mt or 0.76%. Trading volumes decreased by over 30,000 lots to 225,702 lots, and total position decreased by 4,898 lots to 185,342 lots.

In domestic spot markets, spot zinc prices were close to SHFE 1202 zinc contract prices. #0 zinc was traded around RMB 15,200/mt in the morning session, with traded prices falling along with SHFE zinc prices to as low as RMB 15,130/mt at noon. #1 zinc was traded between RMB 15,100-15,150/mt. Zinc prices fell, while market participants did not purchase at lower prices due to pessimism, keeping transactions quiet. SHFE zinc prices plunged in the midday, pushing down spot zinc prices. Spot prices were still close to SHFE 1202 zinc contract prices, but transactions were still muted.