SHANGHAI, Oct 10 (SMM) – Shanghai's zinc spot market saw thin trades and adequate supplies on the morning of Wednesday October 10. Futures prices of zinc continued to rise, and this grew caution among downstream consumers.
In Shanghai, traders raised discounts of domestic #0 zinc to 70 yuan/mt before noon, from flat over the SHFE 1810 contract in the early morning. Offers of imported zinc also grew by some 100 yuan/mt from Tuesday, to 420-200 yuan/mt before noon. Traders accounted for most of the trades today, SMM learned.
In the morning, the 0# common brand was mostly offered at a discount of 70-20 yuan/mt over the SHFE 1810 contract in Shanghai; tighter supplies kept offers of Shuangyan brand at a premium of 250-300 yuan/mt.
Tianjin saw a similar situation as offers for #0 zinc fell from a discount of 300 yuan/mt to 400 yuan/mt during the morning, with traded prices of 23,370-24,810 yuan/mt. The Tianjin-Shanghai price spread stood at a discount of 220 yuan/mt today, 20 yuan/mt wider from Tuesday. Downstream consumers purchased cautiously as price of futures hovered at highs.
The SHFE 1810 contract trade rangebound in the morning and closed at 23,815 yuan/mt at the end of the morning trading session, 520 yuan/mt higher from that time on Tuesday.