Premium of SHFE Zinc Drops Fast, What’s the Reason?

Published: Oct 12, 2017 13:26

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SHFE Zinc has experienced a consecutive drop since the holiday is over, from 500 yuan per tonne against November to 320 yuan per tonne.

SHANGHAI, Oct. 12 (SMM)－According to SMM, SHFE Zinc has experienced a consecutive drop since the holiday is over, from 500 yuan per tonne against November to 320 yuan per tonne. The reason is on one hand, downstream enterprises have prepared some stocks because of high price after holiday. So they are reluctant to purchase due to high price. On the other hand, with the upcoming delivery, the price difference every other month is getting enlarged and premium drops in step. Spot premium is expected to drop in the future.

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