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 for 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

Jinhui Mining Subsidiary Secures Mining License, Boosting Production to 2.44M mt/year

On August 24, Jinhui Mining Co., Ltd. announced that its subsidiary had obtained a mining license and real estate ownership certificate and completed the change of its exploration right. Following the acquisition of the mining right, the company's production capacity will increase from 1.78 million mt/year to 2.44 million mt/year. The move is expected to further expand its lead-zinc resource reserves, strengthen resource security, consolidate its core lead-zinc business, and enhance its sustainable operating capabilities and core competitiveness, in line with the company's long-term development strategy.

6 hours ago

Data: SHFE, DCE market movement (Aug 24)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 24 Aug , 2026

6 hours ago

8 hours ago

China’s zinc oxide imports plunged 65% month‑on‑month in July, while cumulative exports topped 12,000 tonnes

Latest customs data showed China imported 234.12 tonnes of zinc oxide in July, down 65.01% month‑on‑month. Cumulative imports stood at 3,495.83 tonnes for Jan‑Jul. July zinc oxide exports came in at 1,524.18 tonnes, falling 20.27% month‑on‑month. Cumulative exports reached 12,267.66 tonnes over the first seven months.

8 hours ago