SMM Analysis: Price Difference of Spot Zinc Returns to Flat Premium, SMM Tells You the Reason

Published: Oct 13, 2017 15:44

Save

According to SMM statistics, up to Sept.13th, the price difference among Shanghai, Guangdong and Tianjin has returned to flat premium.

SHANGHAI, Oct. 13 (SMM)－According to SMM statistics, up to Sept.13^th, the price difference among Shanghai, Guangdong and Tianjin has returned to flat premium. Premium in Tianjin which has lasted for half year has rapidly shrank since Sept.1^st, approaching to premium of Shanghai Market. The price difference of Shanghai and Guangdong keeps flat premium of 50 yuan per tonne. SMM will analyze the reason of this phenomenon for you.

Notes; Yellow refers to price difference below Shanghai and Guangdong, blue refers to price difference below Shanghai and Tianjin.

Concerning the price difference between Shanghai and Tianjin, since Aug.18^th, price difference of 0# spot zinc in Tianjin Market against that in Shanghai Market has enlarged in step. Driven by supply side and consumption, premium of spot zinc keeps high. For Shanghai Market, with arrival of imported zinc, premium of domestic brand in Shanghai Market has been restrained. Plus Zhejiang being influenced by environmental protection, its consumption keeps weak. Premium of Shanghai market against Tianjin market also weakens.

Since September, overhaul of smelting plants in North China has finished. Circulating stock becomes more sufficient in market. With Tianjin being listed as the top five most heavily polluted cities, the zinc consumption of downstream has been restrained under the green policy. They are reluctant to purchase so Tianjin Market see a drop under pressure. While Shanghai market see a stable consumption with steady premium, which causes flat premiums between two markets.

Concerning Guangdong market, it seems not so changeable as Tianjin market. Die casting zinc alloys keeps stable consumption in Guangdong Market, with 50 yuan per tonne’s price difference against Shanghai for spot zinc.

SMM thinks currently see a stable consumption in Shanghai and Guangdong Market and price difference between two mearkets will remain current level. Tianjin Market will see a limited zinc consumption of downstream due to the 19^th CPC National Congress. Premium of Tianjin against Shanghai will probably see a small premium in the short term.

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

zinc premium

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

6 hours ago

Bullish and Bearish Factors Intertwined as SHFE and LME Zinc Prices Rose [SMM Market Review - Weekly Price Review]

[Mixed Bullish and Bearish Factors in the Market, SHFE and LME Zinc Prices Rose] At the beginning of the week, LME zinc continued last week's downward fluctuation trend; subsequently, the US dollar index dropped back slightly from its highs, and LME zinc rose; however, the ongoing escalation of the Middle East conflict, coupled with the renewed strength of the US dollar index, constrained the upside room for zinc prices, and the center of LME zinc gradually pulled back......

6 hours ago

Zinc Oxide Operating Rates Remained Stable, While End-Use Demand Showed Divergence [SMM Zinc Oxide Weekly Review]

[Zinc Oxide Operating Rates Remain Stable, End-Use Demand Shows Divergence] In terms of orders, overall demand for rubber-grade zinc oxide remained stable, but some enterprises were relatively cautious about expectations for subsequent demand from tyre factories; orders for major ceramic-grade zinc oxide producers were relatively stable, but affected by the overall weakness in the real estate market, overall demand in the sector was average......

6 hours ago

Data: SHFE, DCE market movement (Mar 27)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 27 Mar , 2026

6 hours ago