Spot zinc trades slow on weak supply, demand

Published: Dec 6, 2018 14:11

Save

In Shanghai, the 0# common brand was mostly offered at a premium of 130-180 yuan/mt over the SHFE Dec contract

SHANGHAI, Dec 6 (SMM) – Supply and demand were weak in the Shanghai spot zinc market on the morning of Thursday December 6. Traders accounted for most transactions and downstream purchases remained sluggish.

In Shanghai, the 0# common brand was mostly offered at a premium of 130-180 yuan/mt over the SHFE December contract, or a premium of 440-500 yuan/mt over the SHFE 1901 contract. A higher quality of product kept offers of the Shuangyan and Chihong brands at a premium of 480-500 yuan/mt over the December contract. These compared with the highest level of 130 yuan/mt and 550 yuan/mt over the SHFE 1812 contract, respectively, on Wednesday December 5.

The #0 zinc mostly traded at 21,740-21,690 yuan/mt before noon. Purchases for domestic long-term contracts were thin in the morning, SMM learned.

In Guangdong, tight supplies and slow demand keep spot premiums flat at Wednesday’s levels, at 590-610 yuan/mt over the SHFE 1901 contract. Traded prices mostly occurred at 21,790-21,900 yuan/mt. The Guangdong-Shanghai price spread narrowed to a premium of 110 yuan/mt at noon, from 160 yuan/mt on December 5.

This morning, the SHFE 1901 traded rangebound and closed at 21,230 yuan/mt at the end of the morning trading session, up 45 yuan/mt from that time on Wednesday.

Market commentary Futures movement Spot zinc

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

US DOE to Invest $500M in Domestic Critical Minerals and Battery Materials Production

The US Department of Energy (DOE) plans to provide up to $500 million in funding to expand domestic critical minerals processing and battery materials manufacturing and recycling, as Washington seeks to reduce reliance on foreign supply chains.

1 hour ago

2 hours ago

China’s Inventory Continued to Increase, SHFE Zinc Fluctuated Downward [SMM Zinc Morning Comment]

[SMM Zinc Morning Comment] Last Friday, the most-traded SHFE zinc 2604 contract opened at 24,205 yuan/mt. In early trading, SHFE zinc briefly rose to a high of 24,255 yuan/mt, then bears added to their positions, sending SHFE zinc fluctuating downward all the way to a low of 24,070 yuan/mt near the close. It finally closed down at 24,080 yuan/mt, down 60 yuan/mt, or 0.25%, with trading volume falling to 37,382 lots and open interest increasing by 1,553 lots to 76,744 lots.

2 hours ago

Stronger US Dollar Put LME Zinc Under Pressure [SMM Morning Meeting Summary]

[SMM Morning Meeting Summary: US Dollar Strengthened, LME Zinc Came Under Pressure] Last Friday, LME zinc opened at $3,315.5/mt. At the beginning of the session, bulls and bears were intertwined, and LME zinc briefly rose to a high of $3,316.5/mt. Subsequently, bulls reduced their open interest, and LME zinc fluctuated downward, touching a low of $3,270.5/mt during European trading hours. পরে, the center moved up slightly and fluctuated in consolidation along the daily average line, finally closing down at $3,293.5/mt, down $21/mt, or 0.63%. Trading volume fell to 7,065 lots, and open interest decreased by 1,630 lots to 215,000 lots.

2 hours ago