SMM Brief on SHFE Zinc Futures (2013-1-11)

SHANGHAI, Jan. 11 (SMM) – LME zinc prices overnight plunged advanced. SHFE 1304 zinc contract prices opened higher at RMB 15,580/mt. China’s December PPI was up -1.9%, while CPI was up 2.5%, in line with expectations, and failing to boost market sentiment. Besides, as both LME zinc prices and the Shanghai Composite dropped, SHFE 1304 zinc contract prices fell after touching RMB 15,605/mt in the morning trading, down to RMB 15,535/mt. In the afternoon, LME zinc prices and the Shanghai Composite extended losses, and combined with mounting short momentum, SHFE 1304 zinc contract prices plummeted further to RMB 15,465/mt, and finally closed at RMB 15,455/mt, down RMB 10/mt. Total position decreased by 2194 lots to 92,120 lots.