SMM Zinc Market Daily Review (2013-3-29)-Shanghai Metals Market

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SMM Zinc Market Daily Review (2013-3-29)

Price Review & Forecast 09:25:37AM Apr 01, 2013 Source:SMM

SHANGHAI, Apr. 1 (SMM) - LME zinc prices overnight closed down USD 21.8/mt. SHFE 1306 zinc contract prices opened slightly low at RMB 14,685/mt today. As large numbers of shorts closed positions, SHFE zinc prices were pushed up to RMB 14,835/mt, and then fluctuated between RMB 14,790-14,810/mt. SHFE market lacked directions from the LME market due to its closure. The Shanghai Composite index plunged, and pushed down SHFE zinc prices to RMB 14,770/mt, and with prices finally closing at RMB 14,755/mt, down RMB 85/mt or 0.57%. Trading volumes decreased by 10,458 lots, to 24,982 lots, and total positions decreased by 4,512 lots to 118,794 lots. Trading volumes of SHFE 1307 zinc contracts increased by 1,428 lots, to 42,100 lots, and total positions increased by 2,278 lots, to 96,986 lots.

SHFE 1306 zinc contract prices opened low but then rallied rapidly, fluctuating in a narrow range today. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 90-110/mt, with traded prices between RMB 14,680-14,710/mt. #1 zinc prices were RMB 14,650-14,660/mt. Smelters sold goods actively at the end of both the month and the quarter, but market players remained cautious due to cash flow problems. Investors also stood on the sidelines due to the closure of LME market, and downstream buying interest was low due to pessimism, keeping overall transactions muted.

 

SMM Zinc Market Daily Review (2013-3-29)

Price Review & Forecast 09:25:37AM Apr 01, 2013 Source:SMM

SHANGHAI, Apr. 1 (SMM) - LME zinc prices overnight closed down USD 21.8/mt. SHFE 1306 zinc contract prices opened slightly low at RMB 14,685/mt today. As large numbers of shorts closed positions, SHFE zinc prices were pushed up to RMB 14,835/mt, and then fluctuated between RMB 14,790-14,810/mt. SHFE market lacked directions from the LME market due to its closure. The Shanghai Composite index plunged, and pushed down SHFE zinc prices to RMB 14,770/mt, and with prices finally closing at RMB 14,755/mt, down RMB 85/mt or 0.57%. Trading volumes decreased by 10,458 lots, to 24,982 lots, and total positions decreased by 4,512 lots to 118,794 lots. Trading volumes of SHFE 1307 zinc contracts increased by 1,428 lots, to 42,100 lots, and total positions increased by 2,278 lots, to 96,986 lots.

SHFE 1306 zinc contract prices opened low but then rallied rapidly, fluctuating in a narrow range today. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 90-110/mt, with traded prices between RMB 14,680-14,710/mt. #1 zinc prices were RMB 14,650-14,660/mt. Smelters sold goods actively at the end of both the month and the quarter, but market players remained cautious due to cash flow problems. Investors also stood on the sidelines due to the closure of LME market, and downstream buying interest was low due to pessimism, keeping overall transactions muted.