SMM Brief on SHFE Zinc Futures (2013-7-17)

SHANGHAI, Jul. 17 (SMM) – SHFE 1310 zinc contract prices opened slightly higher at RMB 14,715/mt, but fell below RMB 14,700/mt as longs left the market with profit-taking, moving between RMB 14,670-14,700/mt. A-shares plummeted by 1.01%, distressing market sentiment. LME zinc prices expanded declines to USD 15/mt, increasing selling pressure, and pushing down LME zinc prices to move between RMB 14,640-14,650/mt, dipping to RMB 14,620/mt. Due to news that related high-speed railway investment document was submitted and is expected to be approved soon, SHFE zinc prices were pushed up to RMB 14730/mt, and finally closed at RMB 14,635/mt, down RMB 45/mt, or 0.31%. Trading volumes increased by 11,724 lots, to 39,434 lots, and total positions decreased by 4,130 lots, to 144,658 lots.