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Home / Metal News / Zinc Price Gap between Shanghai and Guangdong to Narrow in December

Zinc Price Gap between Shanghai and Guangdong to Narrow in December

Nov 18, 2015 18:10

Source:SMM

The price spread on #zinc between Shanghai and Guangdong is expected to narrow in December, SMM predicts.

SHANGHAI, Nov. 18 (SMM) - The price spread on #0 zinc between Shanghai and Guangdong is expected to narrow in December, SMM predicts.

Some supplies in South China will go to North China. Meanwhile, buyers in Guangdong will reduce purchases from Chihong Zn&Ge, worrying about losses from the company’s bid sale policy, explained an SMM zinc analyst.In addition, an increasing number of galvanizers in North China are expected to cut output due to the cold weather and shrinking orders, affecting demand for zinc in Shanghai.

The price spread between Shanghai and Guangdong widened in November due to shipments from Shanghai to Tianjin for higher profit, growing supplies in Guangdong and stronger demand for imported zinc in Shanghai.

Discounts on #0 zinc in Guangdong against Shanghai prices are 300-340 yuan per tonne November 18, according to SMM data.

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