SMM Daily Review - 2012/3/7 Zinc Market

SHANGHAI, Mar. 8 (SMM) -- On Wednesday, SHFE 1206 zinc contract prices became the most actively traded, with prices opening lower at RMB 15,560/mt tracking LME zinc prices overnight and fluctuating around the moving average during the day. At the end of trading, SHFE 1206 zinc contract prices dipped due to falling Shanghai Composite Index, and finally closed at RMB 15,615/mt, down RMB 305/mt. Trading volumes increased by 180,360 lots, and total position increased by 20,818 lots to 145,050 lots.

In domestic spot markets, discounts of #0 zinc narrowed to RMB 180-220/mt, with traded prices between RMB 15,300-15,350/mt. #1 zinc was traded between RMB 15,250-15,300/mt. traders were actively moving goods while downstream buying interest also improved, but transactions were muted due to unclear price trends.