SHANGHAI, Jun 26 (SMM) – Poor downstream consumption and the inclination to destock across producers continued to lower offers of spot zinc, and turned them from premiums to discounts on the morning of Wednesday June 26.
At noon, the #0 common brands were offered at a discount of 40-10 yuan/mt against the SHFE zinc July contract, compared with a premium up to 30 yuan/mt on the previous morning.
On the morning of June 26, trades of #0 zinc occurred at 20,210-20,230 yuan/mt, with that of #1 zinc at 20,160-20,180 yuan/mt.
Overall transactions shrank from Tuesday as demand from long-term contracts waned. Sluggish trades drove some sellers out of the market around noon.
In Tianjin, purchases also weakened as higher futures prices of zinc grew caution across downstream consumers. At noon, premiums held at 100-200 yuan/mt over the SHFE July contract, down from 150-260 yuan/mt on Tuesday June 25.
Traded prices of #0 common brands mostly occurred at 20,330-20,450 yuan/mt this morning. The Tianjin-Shanghai price spread widened to a premium of 150 yuan/mt, from a premium of 80 yuan/mt on Tuesday.
The SHFE July contract climbed and closed the morning of Wednesday June 26 at 20,260 yuan/mt, up 225 yuan/mt from that time on June 25.