SHANGHAI, Sep 18 (SMM) – Rising prices of zinc futures improved destocking sentiment across smelters in Shanghai, and fuelled spot transactions on Tuesday September 18. In the second trading session, trades cooled slightly as higher prices deterred purchasingg interest across buyers.
In Shanghai, 0# common brand was mostly offered at a premium of 450-500 yuan/mt over the SHFE 1810 contract, with the highest of 520 yuan/mt this morning. Tighter supplies kept offers of Shuangyan brand at a premium of 560-620 yuan/mt.
The SHFE 1810 contract surged in the morning and closed at 21,400 yuan/mt at the end of the morning trading session, 360 yuan/mt higher from that time on Monday.
Transactions also picked up in Guangdong as the downstream resumed operation from Typhoon Mangkhut. Traders held premiums firm at highs as market supplies were tight.
In Guangdong, premiums of #0 zinc stood at 940-960 yuan/mt over the SHFE 1811 contract, flat from Monday. This morning saw traded prices of 21,740-21,880 yuan/mt. The Guangdong-Shanghai price spread stood at a discount of 50 yuan/mt today.