SHANGHAI, Jun. 9 (SMM) – In China's spot markets, spot discounts of #0 zinc against SHFE 1408 zinc contract prices narrowed from RMB 0-40/mt to RMB 0-20/mt. Some cargo holders were actively selling due to tight mid-year cash flows, increasing market supply. However downstream buying interest was low due to soft end-user demand and tight cash flows.
#0 zinc prices in Guangdong fell from RMB 50/mt below to RMB 60/mt below Shanghai prices. Spot supply in Guangdong was sufficient since most cargo holders were actively selling goods, but downstream buyers were still purchasing on an as-needed basis, which kept prices soft.
Zinc prices in Tianjin fell slightly, with #0 zinc prices on par with Shanghai prices. Goods supply increased as Zijin Mining restarted production following maintenance prior to the Chinese Dragon Boat Festival and since other smelters were actively selling goods. Traders were also active and negotiated on prices, but end-users only purchased on an as-needed basis.