SHANGHAI, May 6 (SMM) – Transactions of spot zinc improved on the first trading day after the Labour Day holiday, as downstream consumers resumed purchases and as trade uncertainties lowered prices of futures. 

On the morning of Monday May 6 in Shanghai, #0 zinc traded at 21,660-21,730 yuan/mt, and #1 zinc at 21,600-21,650 yuan/mt. 

Sellers in Shanghai lowered premiums to 70-80 yuan/mt against the SHFE front-month May contract during the second morning session, compared with a premium of 90-100 yuan/mt in early trades. Premiums of higher quality Shuangyan brand stood at 290-320 yuan/mt at noon.

In Guangdong, offers increased 20-30 yuan/mt in the second trading session, to a premium of 70-80 yuan/mt against the SHFE June contract, as lower futures prices bolstered downstream demand. 

Traded prices of #0 zinc brands, such as Qilin, Cishan, and Tiefeng mostly occurred at 21,500-21,580 yuan/mt this morning. The Guangdong-Shanghai price spread remained unchanged at a discount of 120 yuan/mt. 

As US-China trade tension re-escalated, the SHFE June contract declined and settled at 21,460 yuan/mt at the end of the morning trading session, down 335 yuan/mt from that time on the previous trading day of Tuesday April 30. The May contract traded some 125 yuan/mt higher than the SHFE 1906 contract at noon.