SHANGHAI, Sep 26 (SMM) – As the week-long National Day holiday approaches, greater destock willingness across traders in Shanghai and Tianjin weighed on spot zinc premiums on Wednesday September 26.
In Shanghai, traders lower premiums of domestic #0 zinc to 120-140 yuan/mt before noon, from a premium of 250-260 yuan/mt in the early morning. Offers of imported zinc stayed relatively firm, with SMC, KZ being offered at a premium of 40-60 yuan/mt, and brands from Spanish, Peru, and Mexico at a discount of 220-180 yuan/mt. Downstream consumption improved from Tuesday, SMM learned.
During this morning, 0# common brand was mostly offered at a premium of 120-200 yuan/mt over the SHFE 1810 contract in Shanghai; tighter supplies kept offers of Shuangyan brand at a premium of 260-280 yuan/mt.
In Tianjin, premiums of #0 zinc slid some 45 yuan/mt from September 25, to a maximum of 10 yuan/mt over the SHFE 1810 contract. This morning saw traded prices of 22,300-23,750 yuan/mt. The Tianjin-Shanghai price spread stood at a discount of 150 yuan/mt today, 60 yuan/mt narrower from Tuesday. Downstream buyers purchased cautiously in anticipation of lower offers this morning.
The SHFE 1810 contract rebounded after fell in the morning and closed at 22,395 yuan/mt at the end of the morning trading session, 70 yuan/mt lower from that time on Tuesday.