SMM Daily Review - 2012/2/28 Zinc Market

SHANGHAI, Feb. 29 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,980/mt, rising to struggle at RMB 16,000/mt level after opening. As the weakening US dollar index boosted LME zinc prices at noon, SHFE three-month zinc contract prices surged to RMB 16,140/mt in the afternoon, and finally closed at RMB 16,125/mt, up RMB 185/mt. Trading volumes increased by over 40,000 lots to 196,732 lots, and  positions increased by 7,746 lots to 194,288 lots.

In domestic spot markets, #0 zinc was traded between RMB 15,700-15,750/mt, with transactions made at the low end, and with discounts between RMB 340-370/mt against SHFE three-month zinc contract prices. #1 zinc was traded between RMB 15,650-15,700/mt. Downstream buyers purchased on an as-needed basis, while discounts expanded modestly as registered brands available in the market were limited.