Spot premiums moved at lows last week. As of last Friday, premiums of domestic regular brands stood at 280-290 yuan/mt over the SHFE 2307 zinc contract, and spot premiums of Shuangyan zinc were 370-390 yuan/mt over the contract. Premiums of imported zinc fell significantly to 260 yuan/mt over the SHFE 2307 zinc contract, which was directly delivered to downstream buyers.
Last week, spot zinc was quoted against SHFE 2307 zinc contract. Zinc prices rebounded during the week. Downstream companies had purchased goods around 19,000 yuan/mt previously, and they mainly took deliveries last week. Transactions among traders were made at the average SMM #0 zinc price.
Some traders bought goods in the middle of the week, and spot premiums were firm. The drop in spot premiums of domestic brands slowed down due to maintenance at smelters in Shaanxi and Guangxi. It is expected that this week, spot premiums will remain weak.
