SMM Zinc Market Daily Review (2013-4-17)

SHANGHAI, Apr. 18 (SMM) - LME zinc prices overnight closed the day up 1.8%, so SHFE 1307 zinc contracts prices opened high at RMB 14,675/mt on Wednesday. The Shanghai Composite Index fluctuated weakly during the day, meeting resistance at 2,200, while LME zinc prices inched down during Asian trading hours, pushing down SHFE zinc prices to RMB 14,550/mt, with prices closing at RMB 14,570/mt, up RMB 70/mt or 0.48%. Trading volumes decreased by 48,420 lots, to 67,726 lots, and total positions decreased by 6,206 lots to 149,292 lots.

SHFE 1307 zinc contract prices opened high but increases then narrowed, with cargo holders holding prices. Discounts of #0 zinc against SHFE 1307 zinc contract prices were RMB 70-100/mt, with traded prices between RMB 14,530-14,540/mt. #1 zinc prices were RMB 14,500/mt. Downstream buyers were pessimistic as SHFE zinc prices inched down, and purchased modestly, keeping overall transactions muted.