SMM Brief on SHFE Zinc Futures (2013-1-8)

SHANGHAI, Jan. 8 (SMM) – LME zinc prices overnight stabilized after plunging initially. SHFE 1304 zinc contract prices opened at RMB 15,500/mt, and touched RMB 15,530/mt in the morning trading, but then reversed their increases due to falling LME zinc prices. Due to rebounding LME zinc prices and Shanghai Composite, SHFE 1304 zinc contract prices soared to RMB 15,500/mt at noon. In the afternoon, LME zinc prices slumped, and selloffs increased sharply, SHFE three-month zinc contract prices dipped to an intraday low of RMB 15,395/mt, and finally closed at RMB 15,405/mt, down RMB 135/mt. Total position increased by 666 lots to 89,816 lots.