SHANGHAI, Oct. 14 (SMM) - The price spread between China’s domestic and imported zinc decreased recently with fewer supplies of imported zinc, SMM says.

China saw decreased inflows of imported zinc after the SMM/LME zinc price ratio fell.  “Previous large inflows of imported zinc and soft demand took a toll on domestic zinc prices, weighing down the ratio” said an SMM zinc analyst. The zinc price ratio dropped from 8.5 pre-holiday to 8.0 October 13. Downstream buyers had purchased imported zinc proactively as the price spread between domestic and imported zinc widened to 250 yuan per tonne.

In the meantime, domestic zinc smelters sold actively on rising zinc prices, leading to ample supplies of domestic zinc and in turn weighing on domestic zinc prices, the zinc analyst added. Thus, the price spread between domestic and imported zinc contracted. Discounts of SMC zinc against China’s Yuguang and Qilin zinc turned from 100 yuan to 50 yuan per tonne in Shanghai. The price spread between Belgian and domestic zinc narrowed 90 yuan per tonne, according to SMM data.

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