SHANGHAI, Jul 10 (SMM) – Premiums of spot zinc held stable on the morning of Wednesday July 10 in Shanghai, as SHFE zinc front-month contract extended decline and eased the backwardation structure amid expectations of greater supplies.
Transactions in Shanghai remained thin as traders' demand for the delivery of long-term contracts weakened and a falling market sidelined downstream consumers.
Trades mostly occurred at a premium of 50-60 yuan/mt against the SHFE front-month July contract on the morning of July 10, flat from the previous morning. At noon of July 10, #0 zinc traded at 19,140-19,220 yuan/mt, and #1 zinc at 19,040-19,090 yuan/mt.
In Tianjin, however, spot premiums expanded as shipment by smelters was still en route and kept the market supplies tight. Premiums stood at 100-200 yuan/mt this morning, compared with 70-100 yuan/mt on the morning of July 9.
At noon of July 10, higher-grade #0 zinc saw brisk demand, trading at 19,200-19,340 yuan/mt. The Tianjin-Shanghai price spread widened to a premium of 90 yuan/mt, from a premium of 20 yuan/mt on the morning of July 9.