Bearish sentiment weigh on Shanghai spot zinc transactions

SHANGHAI, May 23 (SMM) – In Shanghai's spot zinc market on Wednesday May 23, traders continued to lower premiums from Tuesday given fewer transactions. Downstream buyers maintained their bearish outlook on zinc prices, SMM learned. 

Despite lower offers, overall transactions remained flat from Tuesday in Shanghai. 

The SHFE zinc 1806 contract hovered between a narrow range and closed at 23,750 yuan/mt before noon, down 150 yuan/mt from the previous day. 

In Shanghai, #0 zinc mostly traded at 23,850-23,910 yuan/mt. The 0# common brand was offered at a premium of 110-140 yuan/mt against the SHFE 1806 contract, compared with premiums of 120-180 yuan/mt on Tuesday. The premium for 0# Shuangyan brand also dipped 20 yuan/mt from Tuesday to 130-160 yuan/mt. 

At noon, 1# zinc traded at 23,740-23,790 yuan/mt in Shanghai. Amid fewer transactions, offers for imported zinc was lowered to flat to a premium of 20 yuan/mt, compared with a premium of 30-50 yuan/mt on Tuesday. 

In Guangdong, #0 zinc mostly traded at 23,830-23,900 yuan/mt. The Guangdong-Shanghai price spread remained unchanged from the previous day at 60 yuan/mt. Cargoes mostly traded at a premium of 200-250 yuan/mt over the SHFE 1807 contract, 50 yuan/mt higher from yesterday. Downstream buyers made fewer inquiries than yesterday and transactions remained sluggish due to a pessimistic outlook on zinc prices.

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