SMM Daily Review - 2012/1/18 Zinc Market

SHAGNHAI, Jan. 19 (SMM) -- On Wednesday, SHFE three-month zinc contract prices opened at RMB 15,530/mt, and fluctuated between RMB 15,500-15,550/mt, dragged down by the Shanghai Composite Index. In the midday, SHFE three-month zinc contract prices touched RMB 15,590/mt, as large numbers of longs left the market ahead of the Chinese New Year holiday, prices finally closed at RMB 15,505/mt, up RMB 35/mt. Trading volumes decreased by 140,000 lots to 155,846 lots, and total position decreased by 2,562 lots to 163,906 lots.

In domestic spot markets, spot discounts were around RMB 350/mt against SHFE 1204 zinc contract prices. #0 zinc was traded between RMB 15,100-15,150/mt, and #1 zinc was traded between RMB 15,050-15,100/mt. Goods supply available in the market was imported zinc, while demand for domestic zinc improved due to favorable discounts. But the market was quiet.