SMM Daily Review - 2012/6/29 Zinc Market-Shanghai Metals Market

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SMM Daily Review - 2012/6/29 Zinc Market

Price Review & Forecast 09:55:43AM Jul 02, 2012 Source:SMM

SHANGHAI, Jul. 2 (SMM) --  Last Friday, SHFE 1210 zinc contract prices opened at RMB 14,300/mt, fluctuating between RMB 14,300-14,400/mt in the morning session. As president of the European Council said an agreement on deepening integration in the euro zone has been reached, the euro surged while the US dollar index plummeted, pushing up LME zinc prices. As large numbers of longs entered the market in the afternoon, SHFE 1210 zinc contract prices touched an intraday high at RMB 14,720/mt, and moved between RMB 14,550-14,700/mt, and finally closed at RMB 14,585/mt, up RMB 275/mt or 1.92%. Trading volumes increased by 27,874 lots to 235,074 lots, and total position decreased by 21,976 lots to 191,372 lots.

In domestic spot markets, spot prices were closed to SHFE zinc prices. #0 zinc was traded around RMB 14,350/mt. Downstream buyers purchased as needed previously due to the lack of orders, and did not increase purchases despite lower prices. Discounts of spot goods expanded to RMB 40/mt at noon as SHFE zinc prices surged, with spot prices up to RMB 14,370-14,400/mt. #1 zinc was quoted between RMB 14,310-14,340/mt. As SHFE zinc prices continued to rise, spot discounts further expanded to as high as RMB 100/mt in the afternoon, allowing traders to purchase actively. But downstream buying interest was still low. Some traders won arbitrage opportunity, while some smelters released some spot goods due to pessimism, leading transactions brisk.
 

Key Words:  SHFE zinc prices   zinc prices 

SMM Daily Review - 2012/6/29 Zinc Market

Price Review & Forecast 09:55:43AM Jul 02, 2012 Source:SMM

SHANGHAI, Jul. 2 (SMM) --  Last Friday, SHFE 1210 zinc contract prices opened at RMB 14,300/mt, fluctuating between RMB 14,300-14,400/mt in the morning session. As president of the European Council said an agreement on deepening integration in the euro zone has been reached, the euro surged while the US dollar index plummeted, pushing up LME zinc prices. As large numbers of longs entered the market in the afternoon, SHFE 1210 zinc contract prices touched an intraday high at RMB 14,720/mt, and moved between RMB 14,550-14,700/mt, and finally closed at RMB 14,585/mt, up RMB 275/mt or 1.92%. Trading volumes increased by 27,874 lots to 235,074 lots, and total position decreased by 21,976 lots to 191,372 lots.

In domestic spot markets, spot prices were closed to SHFE zinc prices. #0 zinc was traded around RMB 14,350/mt. Downstream buyers purchased as needed previously due to the lack of orders, and did not increase purchases despite lower prices. Discounts of spot goods expanded to RMB 40/mt at noon as SHFE zinc prices surged, with spot prices up to RMB 14,370-14,400/mt. #1 zinc was quoted between RMB 14,310-14,340/mt. As SHFE zinc prices continued to rise, spot discounts further expanded to as high as RMB 100/mt in the afternoon, allowing traders to purchase actively. But downstream buying interest was still low. Some traders won arbitrage opportunity, while some smelters released some spot goods due to pessimism, leading transactions brisk.
 

Key Words:  SHFE zinc prices   zinc prices