SMM Morning Review - 2011/12/30 Zinc Market

SHANGHAI, Dec. 30 (SMM) – National Association of Realtors of the US released that seasonally adjusted new home sales were up 7.3% in November to 100.1, with increases seen in all four regions, and a signal of improving real estate sector. In this context, LME zinc prices rose to touch the 5-day moving average and closed at USD 1,830/mt, up USD 11.5/mt. Trading volumes decreased by 921 lots to 7,078 lots, and total position decreased by 892 lots to 257,244 lots. Italy's long-term treasury bills selling triggered market concerns, and the market was quiet at the last day of the year. SHFE 1203 zinc contract prices should move between RMB 14,500-14,800/mt today, with spot discounts expected to be negative RMB 50-150/mt.