SMM Zinc Market Daily Review (2013-2-20)

SHANGHAI, Feb. 21 (SMM) – China’s stock market began to rebound to close at 2397.18 points on February 20, up 0.6%. The most active SHFE zinc contract quickly surged above 20-day moving averaged after opening at RMB 15,785/mt, and later moved between RMB 15,840-15,860/mt. At the tail of the trading, long power was strong, and SHFE 1305 zinc contract hit a high at RMB 15,980/mt and closed at RMB 15,975/mt, up RMB 175/mt, or 1.11%. Trading volumes increased by 63,006 lots to 122,144 lots, and positions added by 23,288 lots to 170,430 lots.

Traded prices for #0 zinc in spot market were largely between RMB 15,300-15,550/mt, with spot discounts over the 1305 SHFE zinc contract expanding to RMB 310-340/mt. Traded prices for #1 zinc were around RMB 15,500/mt. But spot zinc market activity remained quiet since market participants expressed low trading interest. Most downstream producers have yet to resume production, so purchases were still limited, depressing overall trading sentiment.