Bearish outlook deters buyers despite lower spot zinc offers

SHANGHAI, May 30 (SMM) – Despite lower offers in China's spot zinc market, downstream buyers held back from purchases on Wednesday May 30 amid bearish sentiment on prices of futures, SMM learned.

The SHFE zinc 1806 contract fell to a low of 24,080 yuan/mt near noon on May 30 and closed at 24,150 yuan/mt, some 30 yuan/mt lower from Tuesday.

In Shanghai, #0 zinc mostly traded at 23,960-24,130 yuan/mt. The 0# common brand was offered at a premium of 40-70 yuan/mt over the SHFE 1806 contract, 20 yuan/mt lower from the previous day. The premium for 0# Shuangyan brand stood at 50-80 yuan/mt, also down some 20-30 yuan/mt from Tuesday.

Imported zinc of low quality was offered at a discount of 50-30 yuan/mt, with few transactions. At noon, 1# zinc traded at 23,850-24,020 yuan/mt in Shanghai, down 210-220 yuan/mt from May 29. 

In Guangdong, trading liquidity dipped from Tuesday as supplies were adequate and on bearish market sentiment. Traded prices of #0 zinc stood at 24,250-24,310 yuan/mt, down 130 yuan/mt from Tuesday. The Guangdong-Shanghai price spread narrowed 30 yuan/mt from Tuesday to 20 yuan/mt. Cargoes mostly traded at a premium of 210-240 yuan/mt over the SHFE 1807 contract, down 60-90 yuan/mt from May 29. 

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