SMM Daily Review - 2011/12/20 Zinc Market

SHAGNHAI, Dec. 21 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 14,800/mt, and then surged to RMB 14,845/mt, touching the 5-day moving average. But prices then fell to RMB 14,700/mt in the midday, and then rallied to close at RMB 14,780/mt, up RMB 30/mt. Trading volumes decreased by nearly 120,000 lots to 179,620 lots, and total position increased by 3,222 lots to 193,498 lots.

In domestic spot markets, #0 zinc was traded between RMB 14,650-14,700/mt, with discounts of negative RMB 80-100/mt against SHFE 1203 zinc contract prices. #1 zinc was traded between RMB 14,600-14,650/mt. Imported zinc was traded around RMB 14,650/mt, but transactions were quiet due to cash flow problems at the end of the year.