SMM Zinc Market Daily Review (2013-3-21)

SHANGHAI, Mar. 22 (SMM) - LME zinc prices overnight closed with gains. SHFE 1306 zinc contract prices opened slightly higher at RMB 14,945/mt today, and meeting resistance at RMB 15,000/mt. HSBC’s fresh PMI for China rose slightly from February, and the Shanghai Composite rose further. As large numbers of shorts left the market, SHFE 1306 zinc contract prices hit RMB 15,095/mt, fluctuating around RMB 15,000/mt in the afternoon, and finally closed at RMB 14,995/mt. Trading volumes increased by 5,528 lots, to 72,432 lots. Total positions decreased by 5,236 lots to 132,000 lots.

SHFE 1306 zinc contract prices opened high and moved higher today. Discounts of #0 zinc against SHFE 1306 zinc contract prices expanded RMB 190-220/mt, with traded prices around RMB 14,780-14,830/mt. #1 zinc prices were RMB 14,780-14,790/mt. Some downstream enterprises and speculators entered the market due to rising SHFE zinc prices, causing overall transactions to improve.