SMM Daily Review - 2012/1/31 Zinc Market

SHANGHAI, Feb. 1 (SMM) -- SHFE three-month zinc contract prices struggled at RMB 16,000/mt yesterday, with prices falling gradually to an intraday low of RMB 15,930/mt due to slipping Chinese stocks after briefly climbing to RMB 16,100/mt in the morning session. Driven up by rising LME zinc prices, SHFE three-month zinc contract prices gradually reversed previous losses at the end of trading, with prices finally closing at RMB 16,065/mt, down RMB 45/mt or 0.28%.

Spot zinc was traded at discounts of RMB 350/mt over SHFE three-month zinc contract prices, while imported zinc was quoted at discounts of RMB 400/mt, with actual traded prices between RMB 15,600-15,650/mt. #1 zinc was traded between RMB 15,550-15,600/mt. Cargo-holders moved goods actively, while downstream consumers were also more interested in inquiries and buying, both helping improve market trading.