SMM Brief on SHFE Zinc Futures (2013-7-23)

SHANGHAI, Jul. 23 (SMM) – SHFE 1310 zinc contract prices opened RMB 30/mt higher at RMB 14,630/mt. China's central bank eliminated restrictions of loan interest rates for financial institutions, while news that refinancing of infrastructure construction was reported. China's A-shares rebounded, with short momentum waning. SHFE hovered around RMB 14,650/mt in the morning session. LME zinc prices fell in the afternoon, and longs left the market after profit-taking ahead of the release of HSBC's July PMI for China. SHFE zinc prices fell back to the 10 and 60-day moving average, finally closing at RMB 14,620/mt, up RMB 20/mt or 0.14%. Trading volumes of SHFE 1311 zinc contract decreased by 14,564 lots, to 19,172 lots, and total positions decreased by 2,340 lots, to 125,502 lots.