SHANGHAI, May 23 (SMM) - SHFE 1309 zinc contract prices opened flat at RMB RMB 14,480/mt, breaking through the 10-day moving average, touching RMB 14,595/mt. Finally, SHFE zinc prices closed at RMB 14,575/mt, up RMB 90/mt or 0.62%. Trading volumes decreased by 12,622 lots, to 64,490 lots, and total positions increased by 7,516 lots to 147,674 lots. Any sign from Bernanke’s statement that the Fed will maintain easing policies will boost zinc prices to break through the 20-day moving average.

SHFE 1309 zinc contract prices opened flat but then edged up later. Spot premiums of #0 zinc against SHFE 1309 zinc contract prices were RMB 50-70/mt, with traded prices between RMB 14,530-14,570/mt. #1 zinc prices were between RMB 14,500-14,530/mt. The price spread between some high-demand brands and other brands expanded due to decreased supply. Cargo holders were still holding back goods and maintaining prices firm, but downstream buying interest was low, keeping overall transactions muted.