SMM Daily Review - 2012/6/27 Zinc Market

SHANGHAI, Jun. 28 (SMM) -- On Wednesday, SHFE 1210 zinc contract prices opened lower and fluctuated between RMB 14,210-14,345/mt after opening. In the midday, SHFE 1210 zinc contract prices dipped to RMB 14,170/mt since SHFE zinc prices fell slightly, and rallied slightly as large numbers of buyers entered the market. In the afternoon, SHFE 1210 zinc contract prices inched down as the US dollar index surged, touching an intraday low at RMB 14,145/mt, and then rallied to close at RMB 14,245/mt, down RMB 180/mt or 1.25%. Trading volumes increased by 79,566 lots to 271,328 lots, and total position increased by 26,026 lots to 222,384 lots.

In domestic spot markets, #0 zinc prices were between RMB 14,220-14,250/mt. As SHFE zinc prices fell at noon, #0 zinc prices were between RMB 14,190-14,220/mt. #1 zinc was quoted between RMB 14,150-14,200/mt. Smelters were still holding goods as prices plunged, with transactions were mainly made among traders, while downstream buyers purchased at lower prices but limitedly.