SHANGHAI, Feb 22 (SMM) – Sellers reduced spot premiums of zinc to boost trades as seasonality continued to expand supply on the morning of Friday February 22 in Shanghai. However, overall trades barely changed from the previous morning as downstream buyers recovered slowly.
On the morning of Friday February 22 in Shanghai, #0 zinc traded at 21,700-21,780 yuan/mt, and saw traded prices of #1 zinc at 21,560-21,640 yuan/mt.
Offers of #0 zinc stood mostly at a premium of 20-40 yuan/mt over the SHFE 1903 contract, while premiums of higher-quality Shuangyan brand came in at 180-200 yuan/mt at noon. These compared with premiums 50-70 yuan/mt, and 200-220 yuan/mt during the previous morning.
In the first trading session for morning, trades picked up when premiums declined to 30-40 yuan/mt, from 40-50 yuan/mt in early trades. Traded prices were heard at a premium of 20 yuan/mt. In the second session this morning, some sellers exited the market with a wait-and-watch stance, and this thinned transactions.
In Guangdong, premiums dipped some 10 yuan/mt from Thursday, to 50-60 yuan/mt over the SHFE 1904 contract, as sellers were eager to destock. Traded prices of #0 zinc mostly occurred at 21,600-21,680 yuan/mt this morning. The Guangdong-Shanghai price spread narrowed to a discount of 80 yuan/mt at noon, from a discount of 110 yuan/mt on February 21.
The SHFE 1904 contract weakened and settled at 21,555 yuan/mt at the end of the morning trading session on February 22, down 65 yuan/mt from that time Thursday. The SHFE 1903 contract traded some 115 yuan/mt higher than the 1904 contract at noon.