SHANGHAI, Apr. 15 (SMM) – Spot trading was stable and prices remained firm last week. Spot discounts of #0 zinc against SHFE 1406 zinc contract prices fell by RMB 10/mt, to between RMB 90-130/mt. Mainstream #0 zinc prices were between RMB 14,750-14,840/mt, and #1 zinc prices were between RMB 14,720-14,790/mt. Spot supply was tight as many smelters conducted or planned to conduct maintenance, causing the price spread between major registered brands of zinc to narrow. Some traders were holding back goods due to tight market supply and high zinc prices. Some downstream buyers lacked buying interest given high prices, but other buyers were actively purchasing due to the high demand period for zinc. Some of the more optimistic downstream enterprises replenished zinc inventories.
Last week, prices in Guangdong rose to RMB 10-15/mt below Shanghai prices. Supply in Tianjin was tight, with Zijin Mining pre-selling goods after downstream demand improved. Spot #0 zinc prices in Tianjin rose from RMB 30/mt below Shanghai prices to RMB 10/mt above, while prices for Huludao branded #0 zinc produced on older production lines rose by RMB 170/mt, to RMB 15,500/mt.
Spot zinc prices should remain firm this week, with spot discounts of #0 zinc prices expected to narrow to less than RMB 100/mt