SMM Daily Review - 2010/1/15 Zinc Market

SHANGHAI, Jan. 18 (SMM) -- SHFE zinc prices showed weak performance on the last trading day of SHFE 1001 zinc contract, and SHFE three-month contract zinc prices advanced slightly and tried to test 5-day moving average line, with the highest level at RMB 20,845/mt, and positions declined significantly.

Spot zinc market was very lackluster. Downstream buyers paid more attention to the support level of RMB 20,000/mt, but the weak performance of SHFE zinc prices generated the pessimistic sentiment in the market, restricting trading activity. #0 zinc was traded between RMB 20,150-20,200/mt in the morning, but a limited number of smelters were uneager to move goods, with offers firm at RMB 20,300/mt, and with strong reluctance to move goods. SHFE spot-month contract zinc prices fell below RMB 20,000/mt in the afternoon dampened by short positions, with the lowest level at RMB 19,900/mt, and the market pessimism emerged as a result, with offers between RMB 19,850-19,900/mt reported in the spot market. However, spot trading volumes were very limited due to market player pessimistic market outlook.

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