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[Zn] SMM Morning Review - 2009/10/13 Zinc Market

iconOct 13, 2009 00:00

SHANGHAI, Oct. 13 (SMM) -- LME Market 

 
Close
(USD/mt)
Premium/Discount
Volume
(lot)
Position
(lot)
Inventory
(mt)
3-mth Contract
Spot – 3 mth
September Average
1,902
-27
45,704
221,796
436,161
Oct. 12th                
2,085
-26.5
44,481
242,996
432,025

SHFE Market

 
Zinc – Spot Month (RMB/mt)
RMB/USD
SHFE Close
Settlement
Weighted Ave.
Sept. 15th             
14,850
14,790
14,856
1:6.8284
Oct. 12th              
15,650
15,605
15,109
1:6.8275
 

 
Zinc – 3mth (RMB/mt)
Shanghai Spot
#0 Zinc Ingot
SHFE Close
Settlement
Weighted Ave.
Sept. 15th             
15,045
14,950
14,863
14,765
Oct. 12th             
15,810
15,855
15,229
15,435

Summary

On Monday, spot transactions were lukewarm in Shanghai market, #0 zinc was traded at RMB 15,420-15,450/mt, and #1 zinc was traded at RMB 15,400/mt, with more inquiries but limited trading volume. The purchasing interest of downstream manufacturers grew gradually. Guangdong #0 zinc was traded at RMB 15,350/mt, and #1 zinc and imported zinc were traded at RMB 15,300/mt. Zinc prices experienced marked recovery at noon, but the trading sentiment was general in the market, with low buying interest.

As to futures market, SHFE zinc prices opened low, but SHFE 1001 contracts zinc prices soared to RMB 16,115/mt at noon, and closed at RMB 15,935/mt finally. Total positions increased by more than 20,000 lots to 82,010 lots. SHFE three-month contracts zinc prices stabilized above all average lines, so zinc prices are expected to continue to climb in the short term.

 

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