Buyers in Shanghai zinc spot market hold back on adequate supplies

SHANGHAI, Apr 25 (SMM) – With adequate supplies in the Shanghai zinc spot market, downstream buyers made few purchases on Wednesday April 25. Cargoes with invoices for May offered at smaller premiums of 50-80 yuan/mt from cargoes with invoices for April against the SHFE 1805 contract. 

SMM learned that some smelters were not keen to sell, given the lower value-added tax from May 1.

In Shanghai, #0 zinc mostly traded at 24,620-24,680 yuan/mt. The 0# common brands were offered at a premium of 190-200 yuan/mt against the SHFE 1805 contract with 0# Shuangyan at a premium of 200-230 yuan/mt. Most #1 zinc traded at 24,570-24,630 yuan/mt.

In the Guangdong market, #0 zinc mostly traded at 24,630-24,680 yuan/mt. The Guangdong-Shanghai price spread remained flat from the previous day, at a discount of 50-40 yuan/mt. Cargoes with invoices for April mostly traded at a premium of 250-300 yuan/mt aginst the SHFE 1806 contract, nearly unchanged from the previous day.

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