SHANGHAI, Jun 4 (SMM) – Transactions of spot zinc improved in Shanghai on the morning of Tuesday June 4 as downstream consumers stockpiled after prices of futures extended their declines.
This morning in Shanghai, #0 zinc traded at 20,500-20,580 yuan/mt, and #1 zinc at 20,440-20,520 yuan/mt.
Sellers held back from offloading cargoes and cut discounts to 20-10 yuan/mt over the SHFE front-month June contract, compared with a discount down to 30 yuan/mt on the morning of Monday June 3. Greater purchases kept offers flat against the SHFE 1906 contract around noon.
At noon, trades of #0 common brands mostly occurred at a discount of 20 yuan/mt to flat, while the higher-grade Shuangyan and Chihong brands traded at a premium of 40-60 yuan/mt.
In Guangdong, transactions also picked up as downstream consumers procured as needed and speculative demand from traders released. While the SHFE July contract registered steeper declines than the June contract, sellers only expanded spot premiums by some 10 yuan/mt, to 380 yuan/mt over the July contract, in an effort to destock.
Traded prices of #0 zinc mostly occurred at 20,450-20,630 yuan/mt this morning. The Guangdong-Shanghai price spread widened to a discount of 40 yuan/mt, from a discount of 20 yuan/mt on Monday.
The SHFE July contract declined and closed the morning of Tuesday June 4 at 20,115 yuan/mt, down 440 yuan/mt from that time on Monday. The SHFE June contract traded some 420 yuan/mt higher than the July contract at noon.