SMM Daily Review - 2012/2/24 Zinc Market

SHANGHAI, Feb. 27 (SMM) -- Last Friday, SHFE three-month zinc contract prices opened at RMB 15,850/mt, touching RMB 15,965/mt in the morning session, but meeting resistance to fall below the moving average. As a large number of shorts sold goods in the midday, SHFE three-month zinc contract prices inched down in the afternoon to close at RMB 15,805/mt, down RMB 30/mt. Trading volumes increased by over 30,000 lots to 195,742 lots, and positions decreased by lots to 1,094 lots to 187,360 lots.

In domestic spot markets, #0 zinc prices were RMB 330-350/mt lower than SHFE three-month zinc contract prices, between RMB 15,500-15,550/mt, with transactions limited at the high end. #1 zinc was traded between RMB 15,450-15,500/mt. Downstream buyers were cautious, despite sufficient supply in the market, transactions were still muted.