SMM Daily Review - 2012/5/15 Zinc Market

SHANGHAI, May 16 (SMM) -- On Tuesday, SHFE three-month zinc contract prices opened lower at RMB 14,900/mt and dipped to a new low for the year at RMB 14,840/mt. As large numbers of longs entered the market, but SHFE three-month zinc contract prices rallied to the moving average and fluctuated between RMB 14,900-15,000/mt, and finally closed at RMB 15,025/mt, down RMB 30/mt. Trading volumes decreased by 33,620 lots to 112,858 lots, and total position decreased by 3,008 lots to 167,562 lots.

In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were between RMB 50-80/mt, with traded prices between RMB 14,850-14,900/mt. #1 zinc prices were between RMB 14,840-14,880/mt. Downstream buying interest was low, and arbitragers which bought the previous day were holding goods as prices fell further.