SHANGHAI, Oct 31 (SMM) – Weaker prices of zinc futures improved purchases from downstream buyers, and encouraged sellers to firm up premiums in the Shanghai spot zinc market on October 31.
Limited imports also buoyed spot premiums in the morning of October 31. The 0# common brand was mostly offered at a premium of 110-140 yuan/mt over the SHFE 1811 contract in Shanghai; tighter supplies kept offers of the Shuangyan brand at a premium of 600-650 yuan/mt. These compared with premiums of 60-90 yuan/mt and 500-550 yuan/mt, respectively, on Tuesday October 30. The #0 zinc mostly traded at 21,990-22,600 yuan/mt before noon.
Guangdong saw a similar situation as transactions rebounded and premiums for #0 zinc increased some 20 yuan/mt from Tuesday to 320-350 yuan/mt over the SHFE 1812 contract. Traded prices mostly occurred at 21,870-21,950 yuan/mt. The Guangdong-Shanghai price spread stood at a discount of 170 yuan/mt today, 60 yuan/mt wider from Tuesday. Traders firmed up offers as downstream purchases picked up, SMM learned.
This morning, the SHFE 1812 contract rallied after it dipped to a low of 21,470 yuan/mt. It closed at 21,570 yuan/mt at the end of the morning trading session, down 370 yuan/mt from that time on Tuesday. The SHFE 1811 contract followed a similar movement and settled at 21,970 yuan/mt, down 265 yuan/mt from October 30.
