What Pushes Spot Zinc Premiums down so Hard in Shanghai? SMM Analysis

Published: Sep 28, 2017 12:04

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Spot premiums on regular domestic zinc brands in Shanghai fell rapidly over SHFE October zinc on September 27, down from 320-340 yuan per tonne on September 26 to 200-230 yuan per tonne, SMM data show

SHANGHAI, Sept. 28 (SMM) – Spot premiums on regular domestic zinc brands in Shanghai fell rapidly over SHFE October zinc on September 27, down from 320-340 yuan per tonne on September 26 to 200-230 yuan per tonne, SMM data showed.

What drove down spot zinc so hard in Shanghai?

First, SHFE zinc price remains high. Price spreads between SHFE zinc contracts have expanded as the delivery date nears.

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Second, some traders sold actively to generate cash before the Chinese National Day holiday.

Zinc Price in Tianjin Inverts below Shanghai Price on Slack Consumption, SMM Reports

Third, downstream buyers which had built stocks from last Friday, reduced purchases in the latter half of this week, SMM said.

Spot premiums will weaken further before the holiday, SMM added.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

spot premiums zinc prices SHFE zinc spot discounts

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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