SMM Zinc Market Daily Review (2013-11-13)

SHANGHAI, Nov. 14 (SMM) – SHFE 1401 zinc contract prices opened low at RMB 14,810/mt, dragged down by falling LME zinc prices, then hovered between RMB 14,785-14,800/mt, and touching RMB 14,835/mt at noon. With prevailing market caution, SHFE zinc prices inched down in the afternoon and closed at RMB 14,765/mt, down RMB 80/mt. Trading volumes decreased by 7,374 lots, to 24,452 lots, and total positions decreased by 2,388 lots, to 98,758 lots.

#0 zinc prices were between RMB 14,900-14,940/mt, down RMB 30-40/mt, with spot premiums between RMB 100-140/mt against SHFE 1401 zinc contract prices. #1 zinc prices were around RMB 14,870/mt. Spot premiums of Belgian #0 zinc prices were RMB 60/mt, with RMB 14,850/mt, KZ #0 zinc prices were around RMB 14,900/mt, with premiums of RMB 100/mt. SHFE zinc prices fluctuated between the 30 and 60-day moving average. Continuously falling zinc prices forced more buyers out of the market, and traders were taking a wait-and-see attitude. Smelters were moving goods normally, but transactions were muted.