SHANGHAI, June 27 (SMM) – Zinc smelters in Shanghai withheld from selling spot cargoes at a lower premium as SHFE zinc reversed its downward trend on the morning of Wednesday June 27.
Downstream customers also hesitated on buying as they made decisions based on their inventory level, SMM learned.
The SHFE 1807 zinc contract hovered around 22,940 yuan/mt in the morning, and climbed up to a high of 23,145 yuan/mt in the afternoon, up nearly 400 yuan/mt from Tuesday.
In Shanghai, the 0# common brand was offered at a premium of 80-100 yuan/mt over the 1807 contract, and 0# Shuangyan brand at 130-150 yuan/mt, largely flat from Tuesday. The #0 zinc mostly traded at 22,980-23,130 yuan/mt, up 190-220 yuan/mt from a day before.
Trading liquidity was no better in Guangdong, despite lower premiums due to expectations of increasing supply in the region. Cargoes mostly traded at a premium of 360-390 yuan/mt over the SHFE 1808 contract, down 60 yuan/mt from Tuesday. Traded prices of #0 zinc stood at 23,110-23,220 yuan/mt, up 150-190 yuan/mt from the previous day. The Guangdong-Shanghai price spread narrowed 70 yuan/mt to 100 yuan/mt.