Destocking inclination lowers premiums of spot zinc in Shanghai

SHANGHAI, Jun 24 (SMM) – The inclination to destock across sellers of spot zinc accelerated the decline in premiums in Shanghai on the morning of Monday June 24. But a rebound in futures prices of zinc grew caution across downstream consumers, and kept overall trades flat from last Friday. 

The spot zinc market in Shanghai remained a buyer’s market as supplies were sufficient. Sellers lowered premiums to 40-50 yuan/mt, against the SHFE July contract, in the second session for the morning, compared with a premium of 80-100 yuan/mt in early trades. Transactions were active at prices 10-30 yuan/mt lower than the average in the market. 

At noon, trades of #0 common brands mostly occurred at a premium of 40-80 yuan/mt, while the higher-grade Shuangyan and Chihong brands traded at a premium of 80-120 yuan/mt.

In Tianjin, relatively tight supplies boosted trade activities from last Friday, and kept spot sellers from lowering offers. At noon, premiums held at 150-290 yuan/mt against the SHFE July contract, with premiums of high-grade Zijin brand at around 250 yuan/mt. 

Traded prices of #0 zinc mostly occurred at 19,900-21,150 yuan/mt this morning. The Tianjin-Shanghai price spread widened to a premium of 110 yuan/mt, from a premium of 60 yuan/mt on last Friday.

The SHFE July contract climbed and closed the morning of Monday June 24 at 19,840 yuan/mt, down 30 yuan/mt from that time on last Friday.