SHANGHAI, Sept. 9 (SMM) - The price spread between domestic #1 and #0 zinc in Shanghai widened to 155 yuan per tonne September 8, the largest price gap between the two in this year, SMM data show.
“#1 zinc prices were weighed down as zinc alloy producers rushed to imported zinc, which gained more price advantage”, said an SMM zinc analyst. “The high SMM/LME zinc price ratio reaching 8.78 at one point had led to a large inflow of imported zinc”.
Meanwhile, #0 zinc prices stayed firm as zinc smelters held back goods. Smelters were reluctant to sell against sluggish zinc prices and lower zinc concentrate TCs in some regions, which bit into their profit. Besides, some smelters cut output during July-August, leaving supply limited.
The price spread between domestic #1 and #0 zinc is expected to narrow, SMM predicts. Inflows of imported zinc will decrease due to lower profit. The zinc price ratio fell slightly recently, and import premiums remain high at $120-140 per tonne, SMM finds.
For news cooperation, please contact us by email: firstname.lastname@example.org or email@example.com.