SHANGHAI, Aug 29 (SMM) – Tight supplies of domestic brands of #0 zinc supported premiums of spot zinc in the Shanghai market on Wednesday August 29, while trades weakened.
In Shanghai, 0# common brand was offered at a premium of 90-120 yuan/mt over the SHFE 1809 contract, and the higher-grade Shuangyan brand at 150-170 yuan/mt, higher from August 28. Before noon, #0 zinc mostly traded at 21,720-21,800 yuan/mt.
The SHFE 1809 contract climbed up after an initial slump, and closed at 21,665 yuan/mt at the end of the morning trading session, 5 yuan/mt higher from that time on Tuesday.
Available products in Guangdong were also tight, with limited arrivals from smelters. In anticipation of higher zinc prices, smelters did not hurry to destock, given current low inventories of zinc ingots.
In Guangdong, premiums of #0 zinc stood at 690-720 yuan/mt over the SHFE 1810 contract, little changed from Tuesday. This morning saw traded prices of 21,900-21,950 yuan/mt. The Guangdong-Shanghai price spread stood at a premium of 190 yuan/mt today, lower from 260 yuan/mt on August 28.