SHANGHAI, May 9 (SMM) – In China's spot zinc market on Wednesday May 9, smelters continued to lower offers after thinner transactions from the previous day. Pressure grew in the spot market as prices of the SHFE 1806 contract fluctuated during the day, SMM learned.
The SHFE 1806 contract rebounded after it fell to a low of 23,605 yuan/mt in the morning session, and closed lower from Tuesday at 23,795 yuan/mt for the day.
In Shanghai, #0 zinc mostly traded at 23,940-24,020 yuan/mt. The 0# common brands were offered at a premium of 70-100 yuan/mt over the SHFE 1806 contract with 0# Shuangyan at a premium of 90-120 yuan/mt. Premiums further narrowed from 80-160 yuan/mt and 120-160 yuan/mt, respectively, from the previous day. Most #1 zinc traded at 23,910-23,950 yuan/mt.
In Guangdong, #0 zinc mostly traded at 23,900-23,960 yuan/mt. The Guangdong-Shanghai price spread remained unchanged from the previous day, at a discount of 50 yuan/mt. Premiums stood at 40-70 yuan/mt over the SHFE 1806 contract, down 20 yuan/mt from the previous day. However, transactions remained flat from Tuesday as downstream consumers mostly purchased as needed.
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