SMM Daily Review - 2012/3/8 Zinc Market

SHANGHAI, Mar. 9 (SMM) -- On Thursday, SHFE three-month zinc contract prices rallied to the 60-day moving average after opening and edged up following LME zinc prices overnight. With longs increasing purchases, SHFE three-month zinc contract prices reached an intraday high RMB 15,780/mt but fell to close at RMB 15,730/mt, up RMB 110/mt. Trading volumes decreased by 8,614 lots to 171,746 lots, and total position increased by 14,648 lots to 159,698 lots. Transactions were muted as the market was awaiting the result of Greek debt exchange plan.

In domestic spot markets, discounts of #0 zinc were between RMB 200-230/mt, with traded prices between RMB 15,350-15,400/mt, and #1 zinc was traded between RMB 15,300-15,350/mt. Downstream buying interest was lower compared to the previous day, while traders were still actively moving goods, with transactions quiet.