SMM Daily Review - 2012/4/10 Zinc Market

SHANGHAI, Apr. 11 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened at RMB 15,590/mt, and touched RMB 15,730/mt after opening, boosted by LME zinc prices overnight. In the midday, SHFE three-month zinc contract prices plunged with SHFE copper prices, and rolled back previous gains, dipping to an intraday low RMB 15,570/mt in the afternoon, with prices finally closing at RMB 15,595/mt, down RMB 70/mt.

In domestic spot markets, discounts of #0 zinc were between RMB 300-320/mt against SHFE 1207 zinc contract prices, with mainstream traded prices between RMB 15,370-15,400/mt. At noon, discounts narrowed to RMB 300/mt as SHFE plummeted, and traded prices of #0 zinc fell to RMB 15,350/mt. #1 zinc prices were around RMB 15,330/mt, and held firm at RMB 15,300/mt. downstream buyers were cautious since zinc prices did not stabilize.