SMM Zinc Market Daily Review (2013-2-22)

SHANGHAI, Feb. 24 (SMM) –The most active SHFE zinc 1305 contract quickly fell to RMB 15,600/mt after opening at RMB 15,660/mt, but later lurched higher to RMB 15,690-15,700/mt. During the afternoon trading hours, stronger LME zinc prices boosted SHFE zinc prices to hit a high at RMB 15,750/mt, but decline in China’s stock market later weighed down SHFE zinc prices to close at RMB 15,700/mt, up RMB 30/mt, or up 0.19% from a day earlier. Trading volumes reduced sharply by 121,000 lots to 66,330 lots. Positions reduced by 4,410 lots to 135,038 lots.
 
Traded prices for #0 zinc in spot market were largely between RMB 15,390-15,400/mt, with spot discounts over the 1305 SHFE zinc contract around RMB 300/mt. SHFE zinc market saw sharp price decline and position contract, and still corrected around low level, with quiet trading sentiment reported. As downstream producers have not fully resumed production, operating rate was still low and demand for zinc ingots was still sluggish. Nonetheless, transactions slightly improved from a day earlier.