SMM Zinc Market Daily Review (2012/10/9)

SHANGHAI, Oct. 10 (SMM) -- On Tuesday, SHFE 1301 zinc contract prices struggled around the moving average briefly after opening and then climbed above the moving average due to the rising Shanghai Composite Index and LME zinc prices, and touched RMB 15,645/mt at noon. In the afternoon, although the Shanghai Composite Index continued to rise, SHFE 1301 zinc contract prices lost previous gains since some shorts and longs left the market. Finally, SHFE 1301 zinc contract prices closed at RMB 15,575/mt, up RMB 50/mt.

In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were RMB 260-300/mt, with traded prices between RMB 15,250-15,270/mt. SHFE zinc prices continued to rise later in the day, but spot discounts remained between RMB 260-300/mt, pushing up spot prices to RMB 15,300-15,320/mt. #1 zinc prices were between RMB 15,280-15,290/mt. Downstream buyers stood on the sidelines as zinc prices rose, and transactions were muted. In the afternoon, spot discounts stood firm at RMB 260-300/mt, but traded prices fell to RMB 15,300/mt, allowing some buyers to enter the market, with transactions not improving.