SHANGHAI, Aug 1 (SMM) – Spot zinc trades in the Shanghai market on Monday August 6 slowed from last Friday as buyers hesitated and sellers hardly lowered offers. Premiums of cargoes inched down from last Friday.
The SHFE 1808 contract declined from highs in the morning, but at 21,775 yuan/mt at the end of the morning trading session, about 95 yuan/mt higher from last Friday.
In Shanghai, the 0# common brand was offered at a premium of 20-30 yuan/mt over the 1808 contract, and the higher-grade Shuangyan brand was offered at 50-60 yuan/mt. Both were some 10 yuan/mt lower from offers last Friday. Trading prices, however, mostly stood from flat to a premium of 10 yuan/mt over the 1808 contract, at 21,800-21,920 yuan/mt, SMM learned.
In Guangdong, premiums of 0# zinc also dipped by 40 yuan/mt to 260-300 yuan/mt over the SHFE 1809 contract, from last Friday. Current high prices of zinc and poorer downstream orders accounted for the decline. Some #1 Cishan brand entered the market, offered at a premium around 220 yuan/mt over the 1809 contract, but received little interest.
Traded prices of #0 zinc stood at 21,810-21,960 yuan/mt in Guangdong, up an average of over 100 yuan/mt from Friday August 3. The Guangdong-Shanghai price spread stood at a premium of 20 yuan/mt today, from a premium of 40 yuan/mt on August 3.