Greater supply of spot zinc weighs on premiums

Published: Feb 20, 2019 15:11

Save

Overall trades cooled from the previous morning

SHANGHAI, Feb 20 (SMM) – An influx of delivered cargoes in the market and caution across downstream buyers weighed on offers of spot zinc in n Shanghai on the morning of Wednesday February 20. Overall trades cooled from the previous morning.

On the morning of Wednesday February 20 in Shanghai, #0 zinc traded at 21,680-21,720 yuan/mt, and saw traded prices of #1 zinc at 21,520-21,560 yuan/mt. Offers of #0 zinc stood mostly at a premium of 70-90 yuan/mt over the SHFE 1903 contract, while premiums of higher-quality Shuangyan brand came in at 200-220 yuan/mt at noon.

Greater supplies lowered offers to a premium of 80-90 yuan/mt, from 90-100 yuan/mt in early trades, but actual trades occurred mostly at a premium of 70-80 yuan/mt for the first trading session in the morning. Offers changed little during the second session till noon, and transaction activities slowed.

In Guangdong, premiums also declined during the morning of February 20, to 50 yuan/mt over the SHFE 1904 contract at noon, from 70 yuan/mt in early trades, as sellers were eager to destock amid sufficient supply. Traded prices of #0 zinc mostly occurred at 21,510-21,580 yuan/mt. The Guangdong-Shanghai price spread remained at a discount of 150 yuan/mt at noon.

The SHFE 1904 contract traded rangebound and settled at 21,495 yuan/mt at the end of this morning trading session, up 75 yuan/mt from that time on Tuesday. The SHFE 1903 contract traded some 125 yuan/mt higher than the 1904 contract at noon.

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

Mar 13, 2026 18:52

North China Mine Sets March Zinc Concentrates Tender at 2,300 Yuan/mt with Profit-Sharing

[Zinc Concentrates Tender] According to SMM, the March tender price for self pick-up at the mine for zinc concentrates at a mine in North China was around 2,300 yuan/mt in metal content (including the 20/80 profit-sharing arrangement), with the enriched metal not priced. SMM will continue to monitor subsequent changes in processing fees.

Mar 13, 2026 18:52

Zinc Concentrates Market Faces Supply Concerns as Disruptions in Iran, Australia Persist

[Imported Zinc Concentrates Market] Disruptions in Iran and Australia persisted recently, and the market’s concern over zinc concentrates supply continued. This week, traders of imported zinc ore continued to lower spot quotes. It was learned that some recent offers for bulk cargoes of zinc-rich zinc concentrates fell to negative prices.

Mar 13, 2026 18:52

Mar 13, 2026 16:58

Secondary Zinc Oxide Payables Remained Relatively Firm, How Will They Perform in March [SMM Analysis]

Secondary Zinc Oxide Production Fell in February, While Secondary Zinc Oxide Payables Remained Relatively Firm. What Trend Will Secondary Zinc Oxide Show in March?

Mar 13, 2026 16:58