SHANGHAI, Apr. 20 (SMM) – Spot discounts on #0 zinc in Shanghai against SHFE 1506 zinc contract prices widened from RMB 100/mt to RMB 140-90/mt. Smelters sold normally, while cargo holders increased sales, creating healthy supply. Traders expecting spot discounts to narrow purchased at lower prices, widening the spread between regular #0 zinc brands and Shuangyan zinc from RMB 10/mt to RMB 40-50/mt. Downstream interest, however, weakened, resulting in a decline in overall transactions.
In China’s spot markets, smelters will move goods normally this week, and cargo holders will also sell proactively, leading to ample supply. Some traders will purchase at lows, lending support to zinc prices. Zinc prices rose above RMB 16,000/mt, but processing fees at downstream producers lacked ability to rise. Downstream buyers should purchase on an as-needed basis this week, with spot discounts against SHFE 1506 zinc contract prices expanding to RMB 150/mt.