SHANGHAI, Jul. 15 (SMM) - Increasing supply after smelter maintenance and soft demand in Tianjin should lower the price spread on #0 zinc between Tianjin and Shanghai, SMM predicts.
"Premiums of #0 zinc price in Tianjin over Shanghai price are expected to fall below 100 yuan per tonne”, SMM zinc analyst foresees.
Tianjin’s inventories grew to around 10,000 tonnes recently. Shipments from two large smelters in North China that recently restarted from maintenance will add to supplies to Tianjin next week. Higher prices in Tianjin also led to growing arriving shipments of Shuangyan zinc there.
Consumption from galvanizers decreased, though, due to weak demand from end-users, including automobile, home appliance and property sectors, during the off-season.
Tianjin’s zinc prices turned from 200-250 yuan per tonne above to 150 yuan per tonne above Shanghai prices recently, SMM data show.
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