SHANGHAI, May 19 (SMM) – Trading in Shanghai’s spot market was muted last week. Spot discounts on #0 zinc against SHFE 1507 zinc contract prices stayed at RMB 140-110/mt despite a RMB 200/mt decline in SHFE zinc prices. Smelters sold normally, and traders also moved goods actively on falling SHFE zinc prices, leaving supply ample. Traders refrained from buying as the delivery date neared, while downstream buyers purchased modestly at lower prices, leaving overall transactions quiet.
In China’s spot markets, supply will remain abundant as smelters are active in selling, but downstream buyers will purchase as needed this week. Goods releases after delivery should also weigh on spot zinc prices, with spot discounts expected between RMB 100-150/mt against SHFE 1507 zinc contract prices.