SHANGHAI, Oct. 13 (SMM) – In China's spot markets, spot premiums of #0 zinc against SHFE 1412 zinc contract prices stayed between RMB 200-230/mt in Shanghai. 10,000 mt of goods shipped from south China arrived, with ample supply of Qilin, Tiefeng and Feilong zinc. But supply remained tight as traders held back from selling on slight arbitrage opportunities. Downstream buyers watched on the sidelines, leaving trading muted.
Zinc prices are expected to be more resilient than any other base metals this week, and move sideways in the near future.
Shanghai's tight supply situation is expected to improve this week as goods shipped from Guangdong arrive, but cargo holders will hold spot premiums firm, especially as supply from smelters remains modest. Buyers are thus likely to hold more to the sidelines, keeping trading in Shanghai muted. Spot premiums against SHFE 1412 zinc contract prices will hold around RMB 200/mt. Shipments from Guangdong to Shanghai, as well as supply from Yunnan and Sichuan, will cause the price spread between Shanghai and Guangdong to narrow. Nonetheless, Shanghai supply will remain tighter than in Guangdong, keeping the spread between the two regions around RMB 150/mt.