SMM Zinc Market Daily Review (2013-4-11)

SHANGHAI, Apr. 12 (SMM) - LME zinc prices overnight closed the day with declines. SHFE 1307 zinc contracts prices were dragged down and opened low at RMB 14,830/mt. The spokesman with General Administration of Customs stated the NDRC approved investment projects totaling RMB 7 trillion in Q4 2012, boosting the market. Large numbers of longs surged into the market, and the Shanghai Composite Index opened high. As a result, SHFE zinc prices climbed to RMB 14,890/mt, and generally moved between RMB 14,850-14,870/mt in the afternoon. But since the Shanghai Composite Index fell after opening, and as LME zinc prices also slid, SHFE zinc prices weakened in the afternoon, and finally closed at RMB 14,790/mt, down RMB 100/mt or 0.67%. Trading volumes increased by 1,832 lots, to 52,898 lots, and total positions increased by 3,990 lots to 139,454 lots.

SHFE 1307 zinc contract prices opened low, but then rose slightly and then fluctuated. Discounts of #0 zinc against SHFE 1306 zinc contract prices were RMB 90-100/mt, with traded prices between RMB 14,710-14,730/mt. #1 zinc prices were between RMB 14,670-14,700/mt. Sluggish downstream market has dragged down zinc market. With pessimism prevailing in the market, downstream buyers mainly took a wait-and-see attitude, and traders also lacked interest to enter the market as SHFE zinc prices fluctuated, keeping overall transactions muted.