SMM Daily Review - 2012/2/21 Zinc Market

SHANGHAI, Feb. 22 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,615/mt, attempting to touch RMB 15,750/mt in the morning session, but falling below the moving average as shorts were selling goods. It was reported eurozone finance ministers reached an agreement on the EUR 130 billion of bailout fund to Greece, and that Greek debt will be cut to 120% of its GDP by 2020, boosting market confidence. In this context, the Shanghai Composite Index rising, and SHFE three-month zinc contract prices rallied to the moving average and moved between RMB 15,750-15,800/mt in the afternoon, and finally closed at RMB 15,780/mt, up RMB 125/mt.

In domestic spot markets, #0 zinc was traded between RMB 15,400-15,450/mt, with discounts between RMB 270-280/mt against SHFE three-month zinc contract prices. #1 zinc was traded between RMB 15,300-15,350/mt. Downstream buying interest weakened as zinc prices rose, with transactions mainly made among traders.