SHANGHAI, Feb 28 (SMM) – Discounts of spot zinc in Tianjin grew some 10 yuan/mt from Wednesday, to 120 yuan/mt over the SHFE 1903 contract on Thursday February 28, as orange smog alert in the city affected production of galvanizing plants by half and lowered their purchases.
Traded prices of #0 zinc ingot mostly occurred at 21,710-22,540 yuan/mt this morning, with prices of #0 common brands at 21,710-21,780 yuan/mt. The Tianjin-Shanghai price spread remained at a discount of 30 yuan/mt, unchanged from Wednesday.
Sellers of spot zinc in Shanghai were less willing to expand discounts as the futures prices dipped on the morning of Thursday February 28.
However, current high inventories of refined zinc and slow resumption of downstream demand prevent discounts from narrowing, and kept them at around 20 yuan/mt over the SHFE 1903 contract at noon, compared with a discount up to 30 yuan/mt on the previous morning.
This morning in Shanghai, #0 zinc traded at 21,760-21,850 yuan/mt, and saw traded prices of #1 zinc at 21,650-21,700 yuan/mt. Premiums of higher quality Chihong and Shuangyan brands stood at 50-70 yuan/mt this morning, flat from the morning of Wednesday February 27.
The SHFE 1903 contract weakened and settled at 21,795 yuan/mt at the end of this morning trading session, down 95 yuan/mt from that time on Wednesday.