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.