CNY holiday further lowers spot zinc trades in Shanghai, Guangdong

SHANGHAI, Jan 30 (SMM) – The CNY factor weighed on downstream supply and demand in the Shanghai spot zinc market on the morning of Wednesday January 30. 

Few sellers offered in the market, at a discount of 20 yuan/mt over the SHFE February contract in the early morning. Transactions picked up slightly during the second trading session for the morning, but overall trades cooled from Tuesday January 29. 

In Shanghai, traded prices of #0 zinc stood at 21,760-21,820 yuan/mt, and #1 zinc at 21,560-21,720 yuan/mt at noon. 

Similarly, in Guangdong, CNY closures across downstream buyers and traders lowered overall trading activities this morning. An inclination to destock across sellers dragged spot premiums by some 15 yuan/mt from Tuesday, at 60-80 yuan/mt over the SHFE March contract. 

Traded prices of #0 mostly occurred at 21,730-21,790 yuan/mt this morning. The Guangdong-Shanghai price spread remained flat on the morning of January 30.

The SHFE 1903 contract traded rangebound and settled at 21,690 yuan/mt at the end of the morning trading session, down 30 yuan/mt from that time on Tuesday. The SHFE 1902 contract traded some 135 yuan/mt higher than the 1903 contract at noon.