SHANGHAI, Jul 16 (SMM) – Downstream buyers of spot zinc were less active in Shanghai on Monday July 16 as the SHFE 1808 contract slumped and as premiums stayed at high levels.
Transactions were mostly contributed by traders on the last trading day before futures delivery, SMM learned.
The SHFE 1808 contract jumped to 21,140 yuan/mt after opening, but tumbled during the morning and closed at 20,870 yuan/mt before noon, 60 yuan/mt lower from the previous trading day.
In Shanghai, the 0# common brand was offered at a premium of 240-260 yuan/mt over the 1808 contract, and the higher-grade Shuangyan brand at 300 yuan/mt. The #0 zinc mostly traded at 21,100-21,260 yuan/mt, up 40 yuan/mt from last Friday.
Trading activity followed a similar pattern in Guangdong as downstream orders stayed weak amid pessimistic sentiment. This was despite spot premiums at 50 yuan/mt lower than last Friday, to 270-290 yuan/mt over the 1808 contract today.
Imported Spanish and AZ brands flew into the Guangdong market, available at a premium of 190 yuan/mt and 260 yuan/mt over the 1808 contract, respectively. However, they attracted limited purchasing interest. Traded prices of #0 zinc stood at 21,140-21,190 yuan/mt, down an average 90 yuan/mt from July 13. The Guangdong-Shanghai price spread narrowed 80 yuan/mt to 20 yuan/mt.
