SMM Daily Review - 2012/3/13 Zinc Market

SHANGHAI, Mar. 14 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,960/mt, and met pressure at RMB 16,000/mt. Boosted by the Shanghai Composite Index, SHFE three-month zinc contract prices broke through RMB 16,000/mt and finally closed at RMB 16,050/mt, up RMB 185/mt or 1.17%. Trading volumes increased by nearly 30,000 lots to 170,834 lots, and total position increased by 9,466 lots to 167,740 lots.

In domestic markets, discounts of #0 zinc were RMB 330-340/mt, with traded prices around RMB 15,600/mt. spot discounts expanded to RMB 350-360/mt in the midday as SHFE zinc prices rose to RMB 16,000/mt, with traded prices up to RMB 15,650/mt. #1 zinc was traded between RMB 15,550-15,600/mt. Smelters were actively moving goods, keeping goods supply available in the market sufficient.