SHANGHAI, Aug 1 (SMM) – Weak consumption in the low season shrank spot zinc premiums in the Shanghai market on Wednesday August 1. Expectations of imports also accounted for the lower premiums.
The SHFE 1808 contract fell and closed at 21,690 yuan/mt before noon on August 1, up 195 yuan/mt from that time on Tuesday.
In Shanghai, the 0# common brand was offered at a premium of 60-100 yuan/mt over the 1808 contract, and the higher-grade Shuangyan brand was offered at 90-110 yuan/mt. This compared with a premium of 120-130 yuan/mt and 140-150 yuan/mt, respectively, on July 31. The #0 zinc mostly traded at 21,780-21,860 yuan/mt, some 300 yuan/mt higher from July 31.
This morning, limited arrivals of imports lowered discounts of imported zinc over #0 domestic brands from 30 yuan/mt to 10 yuan/mt.
In Guangdong, premiums of 0# zinc also dipped by 20 yuan/mt from Tuesday July 31 as trading cooled on the day. More imports of YP brand entered the market, at a premium of 310 yuan/mt over the 1809 contract, but saw little purchasing interest.
Traded prices of #0 zinc stood at 21,800-21,850 yuan/mt in Guangdong, up an average of 320 yuan/mt from July 31. The Guangdong-Shanghai price spread stood at a premium of 20 yuan/mt today, from a discount of 20 yuan/mt yesterday.