SMM Brief on SHFE Zinc Futures (2013-2-19)

SHANGHAI, Feb. 19 (SMM) – As LME zinc closed down overnight, the most active SHFE 1305 zinc contract started slightly lower at RMB 15,750/mt on February 19. The contract drifted higher with long investors entering markets but then came under pressure at the 5-day moving average since both LME zinc and Chinese A-shares fell sharply, with prices between RMB 15,810-15,830/mt in the morning. In the afternoon, SHFE 1305 zinc contract dropped further and settled at RMB 15,785/mt, a decline of RMB 35/mt or 0.22%. Trading volumes decreased by 18,576 lots to 59,138 lots, but positions added by 2,276 lots to 147,142 lots.