SHFE Zinc Price Movement (2013-2-21)

SHANGHAI, Feb. 21 (SMM) -- On February 21, SHFE zinc prices fluctuated lower. Traded prices for #0 zinc in spot market were largely between RMB 15,390-15,410/mt, with spot discounts over the 1305 SHFE zinc contract between RMB 290-310/mt. Traded prices for #1 zinc were in the RMB 15,330-15,350/mt. SHFE zinc prices plunged, narrowing spot discount, which facilitated outflow of arbitrage goods. Supply of goods was relatively ample in market. In this context, supply of goods was relatively ample. Dip buying from downstream produces also increased, improving transactions. However, as downstream producers did not fully resumed production, downstream demand was still considered weak.