SHANGHAI, Apr. 28 (SMM) – Last week, spot zinc prices remained firm, with spot prices rising from RMB 30/mt below SHFE 1407 zinc contract prices to RMB 30/mt above. #0 zinc prices climbed from RMB 15,050/mt early in the week to RMB 15,150/mt. Supply remains tight due to ongoing maintenance at zinc smelters, but higher zinc prices gave incentive to some smelters to begin moving goods, helping ease tight supply. Traders took a wait-and-see attitude as zinc prices hovered around RMB 15,200/mt and since spot discounts turned to premiums. Firm zinc prices also kept downstream buyers cautious, with most purchasing on an as-needed basis.
Last week, prices in Guangdong were RMB 50-60/mt below Shanghai prices, with the price spread expanding RMB 20/mt from two weeks ago. Spot prices in Guangdong rose above RMB 15,000/mt due to tight supply, and with downstream buyers continuing to purchase on an as-needed basis. Weak downstream buying interest erased zinc price gains in Tianjin, with the price spread between #0 zinc in Tianjin and Shanghai expanding by RMB 10/mt to hit RMB 60/mt. Prices for Huludao branded #0 zinc produced on older production lines rose by RMB 40/mt, to RMB 15,750/mt.
Spot prices should be on par with SHFE 1407 zinc contract prices this week.