SHANGHAI, Jul. 28 (SMM) – In China's spot markets, #0 zinc prices rose in tandem with SHFE zinc prices, with spot discounts narrowing from RMB 100/mt two weeks ago to RMB 0/mt against SHFE 1409 zinc contract prices. Modest supply from smelters and arbitrage traders unwilling to sell led to supply tightness. Nevertheless, downstream buyers were cautious now that zinc prices have risen above RMB 17,000/mt, with trading brisk but mainly made among traders.
Cargo holders will be eager to sell this week to generate cash, while downstream buying interest will be low due to cash flow tightness and shrinking orders. Spot discounts of #0 zinc against SHFE 1410 zinc contract prices will expand to RMB 80-120/mt.