Weaker demand for long-term contracts slows spot zinc trades in Shanghai-Shanghai Metals Market

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Weaker demand for long-term contracts slows spot zinc trades in Shanghai

Price Review & Forecast 02:31:25PM Dec 25, 2018 Source:SMM

SHANGHAI, Dec 25 (SMM) – Slower purchases for long-term contracts and year-end downstream cash flow issues lowered transactions in the Shanghai spot zinc market on the morning of Tuesday December 25. 

In Shanghai, the 0# common brand was mostly offered at a premium of 620-750 yuan/mt over the SHFE 1901 contract. A higher quality of product kept offers of the Shuangyan and Chihong brands at a premium of 880-900 yuan/mt over the January contract. These compared with highs of 650 yuan/mt and 900 yuan/mt, respectively, on Monday December 24.   

Premiums for cargoes with invoices in December stood higher, up to 750 yuan/mt at noon, while premiums of products with invoices in January mostly stood at 600-650 yuan/mt. Traded prices settled flat to a premium of 20 yuan/mt over the SMM average prices. 

In Guangdong, continued tight supplies buoyed spot premiums by 280 yuan/mt from Monday, to 1,350-1,400 yuan/mt over the SHFE 1902 contract. Traded prices mostly occurred at 21,890-22,050 yuan/mt. The Guangdong-Shanghai price spread expanded to a premium of 180 yuan/mt at noon, from 40 yuan/mt on the morning of December 24.  

The SHFE 1902 contract traded rangebound in the early morning of December 25, but slid to settle at 20,405 yuan/mt at the end of the morning trading session, down 410 yuan/mt from that time on Monday. The SHFE 1901 contract traded some 500 yuan/mt higher than the 1902 contract at noon. 

Price

more
1# Zinc
Apr.22
21890.0
70.0
(0.32%)
0# Zinc
Apr.22
21960.0
70.0
(0.32%)
T/C for domestic zinc concentrate
Apr.01
6350.0
200.0
(3.25%)
T/C for imported zinc concentrate
Apr.01
240.0
5.0
(2.13%)
Zinc Alloy (Zamak3/ZX01)
Apr.19
22790.0
-40.0
(-0.18%)

Weaker demand for long-term contracts slows spot zinc trades in Shanghai

Price Review & Forecast 02:31:25PM Dec 25, 2018 Source:SMM

SHANGHAI, Dec 25 (SMM) – Slower purchases for long-term contracts and year-end downstream cash flow issues lowered transactions in the Shanghai spot zinc market on the morning of Tuesday December 25. 

In Shanghai, the 0# common brand was mostly offered at a premium of 620-750 yuan/mt over the SHFE 1901 contract. A higher quality of product kept offers of the Shuangyan and Chihong brands at a premium of 880-900 yuan/mt over the January contract. These compared with highs of 650 yuan/mt and 900 yuan/mt, respectively, on Monday December 24.   

Premiums for cargoes with invoices in December stood higher, up to 750 yuan/mt at noon, while premiums of products with invoices in January mostly stood at 600-650 yuan/mt. Traded prices settled flat to a premium of 20 yuan/mt over the SMM average prices. 

In Guangdong, continued tight supplies buoyed spot premiums by 280 yuan/mt from Monday, to 1,350-1,400 yuan/mt over the SHFE 1902 contract. Traded prices mostly occurred at 21,890-22,050 yuan/mt. The Guangdong-Shanghai price spread expanded to a premium of 180 yuan/mt at noon, from 40 yuan/mt on the morning of December 24.  

The SHFE 1902 contract traded rangebound in the early morning of December 25, but slid to settle at 20,405 yuan/mt at the end of the morning trading session, down 410 yuan/mt from that time on Monday. The SHFE 1901 contract traded some 500 yuan/mt higher than the 1902 contract at noon.