SHANGHAI, June 29 (SMM) – Spot zinc premiums in Shanghai dipped quickly during the second trading session on Friday June 29, from a day earlier, as smelters were more willing to destock at the end of the month.
Trading liquidity, however, showed no signs of picking up from Thursday as downstream mostly took a watch-and-wait stance. Trading was dominated by traders, SMM learned.
In Shanghai, the 0# common brand was offered at a premium of 60-90 yuan/mt over the 1807 contract, down 20 yuan/mt from the previous day, while the higher-grade 0# Shuangyan brand at 100-130 yuan/mt, flat from yesterday. The #0 zinc mostly traded at 23,420-23,500 yuan/mt, up 40-60 yuan/mt from a day before.
The SHFE 1807 zinc contract hovered around 23,250 yuan/mt in the morning, and closed at 23,375 yuan/mt at the end of the morning trading session, up 45 yuan/mt from that on Thursday.
Separately, transaction volumes declined in Guangdong as spot premiums were 40 yuan/mt higher from Thursday, at 360-400 yuan/mt over the SHFE 1808 contract. Traded prices of #0 zinc stood at 23,580-23,650 yuan/mt, up 110-140 yuan/mt from the previous day. The Guangdong-Shanghai price spread widened 60 yuan/mt to 160 yuan/mt.