SHANGHAI, Nov 20 (SMM) – Purchases of long-term contracts improved trades in the Shanghai spot zinc market on the morning of Tuesday November 20, and this buoyed spot premiums from November 19.
The 0# common brand was mostly offered at a premium of 200-250 yuan/mt over the SHFE December contract in Shanghai. A higher quality of product kept offers of the Shuangyan brand at a premium of 430-450 yuan/mt. These compared with an average level of 140 yuan/mt and 475 yuan/mt, respectively, on Monday November 19.
The #0 zinc mostly traded at 21,930-22,240 yuan/mt before noon. Prices in long-term contracts mostly traded around the average SMM prices.
In the second morning trading session, spot premiums dipped from early morning as purchases for long-term contracts came to an end. Premiums mostly stood at 200-220 yuan/mt, down from 240-250 yuan/mt earlier in the morning.
Trades also improved on the morning of Tuesday, also contributed by traders' purchases in long-term contracts. Downstream buyers continued to purchase on demand.
Premiums for #0 zinc changed little from November 19 at 480-510 yuan/mt over the SHFE 1901 contract. Traded prices mostly occurred at 21,880-22,010 yuan/mt. The Guangdong-Shanghai price spread went flat, from a premium of 50 yuan/mt on Monday.
This morning, the SHFE 1901 contract came off from highs and closed at 21,435 yuan/mt at the end of the morning trading session, down 150 yuan/mt from that time on November 19.