SHANGHAI, Oct 24 (SMM) – Trades in Shanghai's zinc spot market on Wednesday October 24 thinned from a day before as higher futures prices of zinc grew caution among downstream consumers.
In Shanghai, traders lowered premiums of domestic #0 zinc to 100-120 yuan/mt before noon, from 180 yuan/mt in the early morning. Offers of imported zinc stayed relatively firm at a premium of 70-130 yuan/mt. Demand from traders' long-term contracts weakened and this weighed on overall transactions this morning, SMM learned.
In the morning, the 0# common brand was mostly offered at a premium of 100-150 yuan/mt over the SHFE 1811 contract in Shanghai; tighter supplies kept offers of Shuangyan brand at a premium of 400-450 yuan/mt.
Guangdong saw a similar situation as premiums for #0 zinc narrowed 150 yuan/mt from Tuesday to 300-330 yuan/mt over the SHFE 1812 contract, with traded prices of 22,580-22,680 yuan/mt. The Guangdong-Shanghai price spread stood at a discount of 110 yuan/mt today, 70 yuan/mt narrower from Tuesday. Downstream consumers purchased cautiously as price of futures hovered at highs.
The SHFE 1812 contract trade rangebound in the morning and closed at 22,360 yuan/mt at the end of the morning trading session, 375 yuan/mt higher from that time on Tuesday. This morning, the SHFE 1811 contract came off from highs and settled at 22,675 yuan/mt, up 270 yuan/mt from October 23.