SMM Brief on SHFE Zinc Futures (2013-10-14)

SHANGHAI, Oct. 14 (SMM) – US will default if it fails to raise debt ceiling before October 17, with market wariness prevailing in the market. SHFE 1401 zinc contract prices opened at RMB 14,960/mt, soaring immediately following opening but dropping back later, hitting a daily low of RMB 14,885/mt. SHFE zinc prices edged up as bargain hunters entered the market, rallying to the opening price. China’s September CPI rose 0.8% MoM, and up 0.8% YoY; PPI rose by 0.2% MoM, but down 1.3% YoY. Narrower declines show demand improved, giving support to zinc prices. SHFE zinc prices touched RMB 14,995/mt, and closed at RMB 14,980/mt, up RMB 50/mt or 0.33%. Trading volumes decreased by 30,322 lots, to 43,832 lots, and total positions increased by 4,244 lots, to 149,166 lots.