SHANGHAI, Nov 2 (SMM) – Growing supplies of domestic zinc weighed on spot offers by traders in Shanghai market on November 2. However, downstream buyers remained cautious as prices of futures fluctuated.
In Shanghai, limited supply of imports buoyed offers of Australian SMC zinc to a premium of 150 yuan/mt over the SHFE November contract. The 0# common brand was mostly offered at a premium of 80-120 yuan/mt over the SHFE 1811 contract; tighter supplies kept offers of the higher-grade Shuangyan and Chihong brands at a premium of 580-600 yuan/mt. The #0 zinc mostly traded at 21,960-22,480 yuan/mt before noon.
Compared with Shanghai, Guangdong saw more active transactions on the morning of Friday as downstream buyers restocked for the weekend. Supplies in the market stood relatively tight and this expanded premiums for #0 zinc by 10 yuan/mt from Thursday to 390-430 yuan/mt over the SHFE 1812 contract. Traded prices mostly occurred at 21,820-21,950 yuan/mt. The Guangdong-Shanghai price spread stood at a discount of 50 yuan/mt today, 70 yuan/mt narrower from November 1.
This morning, the SHFE 1812 contract edged down and closed at 21,475 yuan/mt at the end of the morning trading session, down 45 yuan/mt from that time on Thursday. The SHFE 1811 contract followed a similar movement and settled at 21,835 yuan/mt, also down 45 yuan/mt from November 1.