SHANGHAI, Nov 22 (SMM) – While imported zinc brands such as KZ and YP flew in Shanghai spot market, most downstream buyers purchased as required on the morning of November 22. This lowered spot premiums from November 21. Trading volume also fell from Wednesday.
The 0# common brand was mostly offered at a premium of 160-200 yuan/mt over the SHFE December contract in Shanghai. A higher quality of product kept offers of the Shuangyan brand at a premium of 480-500 yuan/mt. These compared with an average level of 250 yuan/mt and 525 yuan/mt, respectively, on Wednesday November 21.
The #0 zinc mostly traded at 21,620-22,010 yuan/mt before noon. Prices in long-term contracts mostly fell to a discount of 20-10 yuan/mt over the average SMM prices.
However, in Guangdong, relative tight supplies and downstream purchases buoyed spot premiums, by some 110 yuan/mt from Wednesday to 750-790 yuan/mt over the SHFE 1901 contract. Traded prices mostly occurred at 21,760-21,860 yuan/mt. The Guangdong-Shanghai price spread stood at a premium of 190 yuan/mt, compared with a discount of 20 yuan/mt.
This morning, the SHFE 1901 contract rebounded after dipped and closed at 21,100 yuan/mt at the end of the morning trading session, down 20 yuan/mt from that time on November 21.