SHANGHAI, Dec 27 (SMM) – Sellers firmed up spot zinc offers on tight supplies in Shanghai market on Thursday December 27, but actual transactions were thin as purchases for long-term contracts ended.
In Shanghai, the 0# common brand was mostly offered at a premium of 880-950 yuan/mt over the SHFE 1901 contract, compared with a premium of 800-850 yuan/mt on December 26. A higher quality of product kept offers of the Shuangyan and Chihong brands at a premium of 900-950 yuan/mt over the January contract this morning.
Smelters slowed deliveries of products at the year-end, and this grew supply tightness in the market. Downstream buyers continued to purchase as required, with some demand moving to the nearby Ningbo market, where offers for the same brand stood some 100 yuan/mt lower Shanghai.
Similarly, in Guangdong, continued tight supplies buoyed spot premiums by 190 yuan/mt from Wednesday, to 1,540-1,650 yuan/mt over the SHFE 1902 contract. Traded prices mostly occurred at 22,340-22,510 yuan/mt. The Guangdong-Shanghai price spread expanded to a premium of 320 yuan/mt at noon, from 180 yuan/mt on the morning of December 26.
The SHFE 1902 contract lost part of the overnight gains and settled at 20,770 yuan/mt at the end of the morning trading session, still up 120 yuan/mt from that time on Wednesday. The SHFE 1901 contract traded some 475 yuan/mt higher than the 1902 contract at noon.