SMM Brief on SHFE Zinc Futures (2013-2-8)

SHANGHAI, Feb. 8 (SMM) – LME zinc prices rebounded slightly but still closed down overnight. Hence, 1305 SHFE zinc contract opened down at RMB 15,835/mt on February 8 and were pushed higher to around RMB 15,925/mt due to long activity. Later, China's trade came in at RMB 29.2 billion for January, well above market expectations. China's CPI rose 2.0% YoY in January, while PPI dropped 1.6% YoY, both in line with market anticipation. China's economic figures boosted market confidence and lifted Chinese A-shares higher. As such, SHFE zinc prices trended up and broke resistance at the 10-day moving average to RMB 15,980/mt. But with pressure at the 5-day moving average, 1305 SHFE zinc contract dipped swiftly at the tail of trading and closed at RMB 15,870/mt, still a gain of RMB 5/mt.