SMM Daily Review - 2012/5/17 Zinc Market

SHANGHAI, May 18 (SMM) -- On Thursday, SHFE three-month zinc contract prices opened at RMB 14,945/mt and dipped below the moving average to an intraday low RMB 14,870/mt. As the Shanghai Composite Index surged and due to rebounding SHFE copper prices, SHFE three-month zinc contract prices rallied and finally closed at RMB 14,975/mt, up RMB 5/mt or 0.03%. Trading volumes decreased by 8,858 lots to 112,424 lots, and total position decreased by 4,670 lots to 168,020 lots.

In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were around RMB 60/mt, with traded prices between RMB 14,840-14,860/mt. #1 zinc prices were around RMB 14,830/mt. Downstream buying interest did not improve, while some traders were awaiting delivery, leaving the overall transactions quiet.