SMM Zinc Market Daily Review (2013-3-19)

SHANGHAI, Mar. 20 (SMM) – The SHFE 1306 zinc contract price opened at RMB 14,900/mt on Tuesday and moved between RMB 14,905-14,925/mt. In the afternoon, SHFE zinc prices hit a low of RMB 14,815/mt as LME zinc prices slumped and shorts flooding into the market to finally end at RMB 14,850/mt, down RMB 45/mt or 0.3%. Trading volumes fell to 75,294 lots and positions were down 2,144 lots to 139,474 lots.

In China’s spot zinc market, mainstream traded prices for #0 zinc prices were between RMB 14,720-14,730/mt on Tuesday, with spot discounts of RMB 170-190/mt over the most active SHFE zinc contract price, while #1 zinc prices were mainly around RMB 14,700/mt. Buyers were cautious after purchasing goods when prices plunged on Monday, leaving transactions fewer than the previous trading day. In the afternoon, #0 zinc prices slipped to RMB 14,650-14,670/mt along with falling SHFE zinc prices, and investors rarely entered the market, awaiting for clear signals.