SHANGHAI, Mar 20 (SMM) – Transactions in the spot zinc market in Shanghai cooled on the morning of Wednesday March 20, compared with the previous morning, as supplies remained ample and traders tended to negotiate long-term contracts.
This morning in Shanghai, #0 zinc traded at 22,340-22,350 yuan/mt, and saw traded prices of #1 zinc at 22,220-22,240 yuan/mt. Offers of #0 common brands were at a premium of 470-500 yuan/mt over the SHFE April contract, while offers for the higher-grade Chihong and Shuangyan brands stood at a premium of up to 520 yuan/mt.
While sellers mostly offered at a premium of 500 yuan/mt in early trades, some lowered premiums to 480 yuan/mt to attract downstream purchases. Actual trades mostly occurred at a premium of 490 yuan/mt.
Supplies of cargoes with invoices for April increased in the market, with premiums of 40-80 yuan/mt. This accounted for most of the transactions this morning.
In Guangdong, offers dropped by some 80 yuan/mt from Tuesday, to a premium of 520-550 yuan/mt over the SHFE 1905 contract, as cargoes were sufficient. Trades picked up in the second trading session of the morning when premiums dipped to around 520 yuan/mt.
Traded prices of #0 zinc mostly occurred at 22,280-22,360 yuan/mt this morning. The Guangdong-Shanghai price spread stood at a discount of 40 yuan/mt, down from 100 yuan/mt on Tuesday.
The SHFE 1904 contract traded rangebound and settled at 21,855 yuan/mt at the end of this morning trading session, up 70 yuan/mt from that time on Tuesday. The SHFE 1905 contract traded some 90 yuan/mt lower than the 1904 contract at noon.