SHANGHAI, Aug 23 (SMM) – Greater supplies of spot zinc in the Shanghai market dragged down premiums on Thursday August 23, when both cargoes with September invoices and imported materials entered the market.
Trades thinned from August 22 as traders hesitated on lower premiums and as downstream demand weakened.
In Shanghai, 0# common brand was offered at a premium of 280-360 yuan/mt over the 1809 contract, compared with a premium of 450-480 yuan/mt on August 22. The higher-grade Shuangyan brand was offered at a premium of 360-450 yuan/mt. The #0 zinc mostly traded at 21,300-21,420 yuan/mt before noon.
Tianjin also saw fewer transactions as downstream consumers kept on the sidelines. While premiums narrowed some 70 yuan/mt from August 22 to 400-520 yuan/mt, prices increased as futures picked up. Zijin, Hongye, and Bailing brands of #0 zinc mostly traded at 21,390-21,560 yuan/mt before noon. Traded prices of #1 zinc stood at 21,340-21,510 yuan/mt.
The SHFE 1809 contract traded at 21,040 yuan/mt in the morning and closed at 21,010 yuan/mt at the end of the morning trading session, about 260 yuan/mt higher from that time on Wednesday.
In Guangdong, available products in the market remained tight with limited arrivals from smelters. Downstream consumers purchased as needed and trade volumes changed little from August 22, SMM learned. Premiums of #0 zinc stood at 680-750 yuan/mt over the SHFE 1810 contract, flat from Wednesday. Traded prices were mostly at 21,350-21,450 yuan/mt this morning. The Guangdong-Shanghai price spread stood at a premium of 50 yuan/mt today, from a discount of 10 yuan/mt on August 22.