SHANGHAI, Jul 2 (SMM) – Transactions of spot zinc improved in Shanghai on the morning of Tuesday July 2 as traders accelerated stockpiling after prices of futures weakened. However, downstream consumers continued to hold from purchasing amid a bearish outlook on prices.
This morning in Shanghai, #0 zinc traded at 19,780-19,840 yuan/mt, and #1 zinc at 19,700-19,740 yuan/mt.
Greater price spread between the SHFE July and August contracts also boosted purchases by traders. Spot sellers limited their shipments and cut discounts smaller than 10 yuan/mt at noon, against the SHFE front-month July contract. This compared with a discount of 30-20 yuan/mt on the morning of Monday July 1.
At noon, trades of #0 common brands mostly occurred at a discount of 10 yuan/mt to flat, while the higher-grade Shuangyan and Chihong brands traded at a premium of 20-40 yuan/mt.
In Tianjin, transactions diminished as lower prices and sufficient supplies grew bearish sentiment across downstream consumers. Sellers lowered premiums to 50-110 yuan/mt around noon, from 90-150 yuan/mt in early trades, but this failed to improve purchases. High-quality brands such as Zijin accounted for most of the transactions, while trades of common brands were limited.
Traded prices of #0 zinc common brands mostly occurred at 19,860-19,960 yuan/mt this morning, compared with prices of 19,810-19,910 yuan/mt for #1 zinc. The Tianjin-Shanghai price spread narrowed 10 yuan/mt from the previous morning, to a premium of 80 yuan/mt.
The SHFE July contract declined and closed the morning of Tuesday July 2 at 19,820 yuan/mt, down 275 yuan/mt from that time on Monday.
