SMM Daily Review - 2010/1/18 Zinc Market

SHANGHAI, Jan. 19 (SMM) -- SHFE 1004 zinc contract prices slipped at first, but later moved higher. SHFE 1004 zinc contract prices climbed steadily driven up by LME zinc prices and SHFE copper prices after dipping to RMB 20,235/mt, and closed at RMB 20,550/mt, approaching the highest level. Technical indicators signal SHFE 1004 zinc contract moved below 5-day moving average line, and moving average lines were on a downward track in the short term.

In the spot zinc market, SMM offers for #0 zinc were RMB 19,900-20,000/mt, down RMB 250/mt compared with last Friday levels. Trading sentiment was very slim in the morning, with traded prices around RMB 19,950/mt, but later traded prices advanced to RMB 20,000/mt following rising SHFE zinc prices, with offers at RMB 20,500/mt even heard in the afternoon. However, buying interest was low, and traders reported limited cargo movement. SMM predicts SHFE zinc prices will fluctuate this week, and spot zinc prices will struggle at RMB 20,000/mt.

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