SMM Brief on SHFE Zinc Futures (2014-3-20)

SHANGHAI, Mar. 20 (SMM) – The most active SHFE 1406 zinc contract prices followed LME zinc prices down to RMB 14,620/mt after starting lower at RMB 14,705/mt in Wednesday’s night session. The contract prices later rebounded to an intraday high of RMB 14,890/mt, boosted by a sharp rebound in SHFE copper prices, and closed up RMB 110/mt, or 0.75%, at RMB 14,860/mt. SHFE 1406 zinc contract prices fell to an intraday low of RMB 14,780/mt after opening at RMB 14,860/mt, dragged down by LME zinc prices in the morning trading hours. The metal hovered most of the day between RMB 14,780-14,810/mt, and finished up RMB 30/mt, or 0.2%, at RMB 14,780/mt on Thursday. Trading volumes gained 2,654 lots to 24,032 lots, while positions shed 1,712 lots to 73,772 lots. SHFE zinc prices bounced back after testing a recent low of RMB 14,620/mt on Thursday, facing resistance at the 20-day moving average.