Spot zinc trades improve in Shanghai, remain quiet in Guangdong

SHANGHAI, Jan 4 (SMM) – Transactions of domestic brand spot zinc improved in Shanghai in the second half of the morning trading session on January 4 as downstream restocked ahead of the weekend, and this buoyed spot premiums. 

In Shanghai, the 0# common brand was mostly offered at a premium of 580-650 yuan/mt over the SHFE 1901 contract; a higher quality of product kept offers of the Shuangyan and Chihong brands at a premium of 800-850 yuan/mt over the January contract this morning. 

While an influx of Zijin brand kept its premiums at lows around 580 yuan/mt in the early morning, pre-weekend demand from downstream buyers buoyed the premiums up to 600 yuan/mt near noon. Offers for cargoes in long-term contracts also rose to a premium of 640-650 yuan/mt before noon, from a premium of 600 yuan/mt in the early morning.  

However, in Guangdong, tepid purchases and relatively higher supplies lowered spot premiums by 60 yuan/mt from Thursday, to 1,340-1,400 yuan/mt over the SHFE 1902 contract. Traded prices mostly occurred at 21,600-21,760 yuan/mt. The Guangdong-Shanghai price spread changed little from January 3, at a premium of 220 yuan/mt at noon.  

The SHFE 1902 contract traded mostly rangebound, and surged to settle at 20,420 yuan/mt at the end of the morning trading session, up 50 yuan/mt from that time on Thursday. The SHFE 1901 contract traded some 500 yuan/mt higher than the 1902 contract at noon.