Home / Metal News / Zinc / Spot zinc premiums in Shanghai dip as smelters eager to destock
Spot zinc premiums in Shanghai dip as smelters eager to destock
Jun 29,2018 14:07CST
price review forecast
Source:SMM
Spot zinc premiums in Shanghai dipped quickly during the second trading session on Friday as smelters were keen to destock

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.

 

Market commentary
Futures movement

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news