SHANGHAI, Apr 25 (SMM) – Transactions of spot zinc remained slow in Shanghai due to poorer demand from traders as deliveries for long-term contracts concluded. However, trades improved in Guangdong as downstream consumers stockpiled ahead of the Labour Day holiday.
This morning in Shanghai, #0 zinc traded at 21,680-21,750 yuan/mt, and saw traded prices of #1 zinc at 21,580-21,640 yuan/mt.
Keen to discharge cargoes, sellers in Shanghai lowered premiums to 60-80 yuan/mt against the SHFE front-month May contract around noon, compared with premiums of 90-110 yuan/mt in the earlier morning. Premiums of higher quality Shuangyan brand stood at 340-350 yuan/mt at noon, compared with premiums of 330-350 yuan/mt on the previous morning.
In anticipation of lower prices, downstream buyers did not hurry to restock for the upcoming holiday.
In Guangdong, offers barely changed from the previous morning, standing at a premium of 170-180 yuan/mt against the SHFE June contract, but lower prices of futures bolstered downstream purchases. Some consumers commenced pre-holiday stockpiling, and this also improved trades.
Traded prices of #0 zinc mostly occurred at 21,570-21,630 yuan/mt this morning. The Guangdong-Shanghai price narrowed to a discount of 110 yuan/mt, from a discount of 130 yuan/mt on Wednesday April 24.
The SHFE June contract declined and settled at 21,410 yuan/mt at the end of the morning trading session, down 10 yuan/mt from that time on Wednesday. The May contract traded some 195 yuan/mt higher than the SHFE 1906 contract at noon.
