SHANGHAI, Apr. 8 (SMM) – Last week, spot zinc prices hovered in a narrow range, with spot discounts for #0 zinc against SHFE 1406 zinc contract prices narrowing by RMB 20/mt, to RMB 100-140/mt, and with #0 zinc prices moving between RMB 14,680-14,730/mt. Smelters were unwilling to sell goods, causing shortages of some brands. A limited amount of imported zinc also added to tight conditions and caused traders to restrict sales, keeping zinc prices firm. Downstream buying interest was also low due to firm prices, despite the easing of tight cash flows at the start of the new month.
Last week, the price spread between Guangdong and Shanghai narrowed to RMB 10/mt since maintenance at some smelters caused supply to tighten, which also caused Tianjin and Shanghai prices to narrow. Prices for Huludao branded #0 zinc produced on older production lines were raised by RMB 40/mt, to RMB 15,310/mt.
Spot discounts of #0 zinc against SHFE 1406 zinc contract prices should narrow to RMB 100/mt.