SMM Zinc Market Daily Review (2013-2-8)

SHANGHAI, Feb.16 (SMM) -- SHFE 1305 zinc contract prices advanced to hit at high at RMB 15,925/mt after opening at RMB 15,838/mt on February 8th. The better-than-expected trading data from China later announced further booted market confidence, sending China’s stock market higher. In response, the most active SHFE zinc contract advanced to break through 10-day moving average and hit a high at RMB 15,980/mt, but still met resistance at 5-day moving average. At the tail of the trading, the most active zinc tract closed at RMB 15,870/mt, up RMB 5/mt.

Discounts of #0 zinc against SHFE 1305 zinc contract prices were between RMB 340-370/mt, with traded prices between RMB 15,750-15,600/mt. #1 zinc was traded at RMB 15,520/mt. Market players began to leave the market in the last trading week before the Chinese New Year holiday, and transactions were muted, with only limited arbitrage transactions reported.