SMM Brief on SHFE Zinc Futures (2013-4-12)

SHANGHAI, Apr. 12 (SMM) – LME zinc prices overnight rallied after initially dipping. SHFE 1307 zinc contracts prices opened flat at RMB 14,820/mt, and generally moved between RMB 14820-14,840/mt after opening. LME zinc prices plunged at noon, and the Shanghai Composite Index continued to weaken, closing the day with declines of 0.55%, dragging down SHFE zinc prices. As short momentum mounted after opening, SHFE zinc prices lost the 5-day moving average, finding temporary support at the 10-day moving average, and closing at RMB 14,785/mt, down RMB 55/mt or 0.37%. Trading volumes decreased by 7,112 lots, to 45,786 lots, and total positions increased by 3,344 lots to 142,798 lots.