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.