Spot Zinc Prices in Shanghai Strengthened

Spot premiums strengthened last week. As of last Thursday, premiums stood at 120-150 yuan/mt against the SHFE May zinc contract for regular brands, and spot premiums of Shuangyan zinc were 170-190 yuan/mt.

At the beginning of the week, the prices of zinc ingots fell below the 22,000 yuan/mt mark, and the downstream purchases increased, especially after zinc prices further dropped to around 21,600 yuan/mt. When spot premiums rose to 120 yuan/mt, traders were selling aggressively, and overall trading picked up.

However, with a further drop in zinc prices, the downstream purchases decreased. Traders raised quotes slightly. Overall trades weakened compared to last Monday. Spot premiums will consolidate at the current level after Labour Day holidays.