SHANGHAI, June 12 (SMM) – Sellers were keen to destock while bearish sentiment on zinc prices deterred downstream buyers in China's spot zinc market on Tuesday June 12, SMM learned. Environmental restrictions also exerted pressure on prices.
The SHFE zinc 1807 contract declined to a low of 24,470 yuan/mt on the morning of June 12 and closed at 24,525 yuan/mt, some 10 yuan/mt lower from the end of Monday's morning trading session.
In Shanghai, #0 zinc mostly traded at 24,680-24,740 yuan/mt. The 0# common brand and Shuangyan brand were mostly offered at a premium of 180-210 yuan/mt over the SHFE 1807 contract, compared with a discount of 70-30 yuan/mt against the SHFE 1806 contract on June 11.
In Guangdong, sluggish downstream demand and bearish market sentiment lowered trading liquidity from Monday. Traded prices of #0 zinc stood at 24,680-24,730 yuan/mt, down 60 yuan/mt from Monday. The Guangdong-Shanghai price spread widened to 20 yuan/mt, from flat on Monday. Cargoes mostly traded at a premium of 180-210 yuan/mt over the SHFE 1807 contract, down 20 yuan/mt from June 11.
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