SMM Brief on SHFE Zinc Futures (2013-4-8)

SHANGHAI, Apr. 8 (SMM) – SHFE 1307 zinc contracts prices opened at RMB 14,650/mt today since LME zinc prices gained back some losses during the Qingming holiday in China. But LME zinc prices overnight plunged after opening, and investors were concerned the avian influenza will trigger market fears, dragging down commodity prices. As a result, large numbers of shorts rushed to the market, and SHFE zinc prices dipped to RMB 14,575/mt. But as the Shanghai Composite Index pulled up, and since LME zinc prices inched up to USD 1,900/mt, SHFE zinc prices broke through the 5-day moving average, and finally closed at RMB 14,735/mt, up RMB 125/mt or 0.86%. Trading volumes decreased by 25,030 lots, to 64,458 lots, and total positions decreased by 2,894 lots to 130,496 lots.