SHANGHAI, Jul 12 (SMM) – Sellers of spot zinc started to offer against the SHFE August contract on the morning of Friday July 12 as the delivery day for the July contract approached. Purchases by traders to meet long-term contracts demand contributed to most of the trades this morning, with downstream consumers purchasing as required ahead of the weekend.
At noon, the #0 common brands were offered at a premium of 50-60 yuan/mt against the SHFE August contract, compared with a premium of 50-70 yuan/mt over the SHFE July contract on the previous morning.
On the morning of July 12, trades of #0 zinc occurred at 19,140-19,180 yuan/mt, with that of #1 zinc at 19,040-19,070 yuan/mt.
In Tianjin, trades improved from the previous morning as downstream consumers favoured high-grade zinc brands. This prompted sellers to hike offers to a premium of 120-200 yuan/mt over the SHFE August contact at noon of July 12, from a premium down to 100 yuan/mt in earlier trades.
Traded prices of #0 common brands mostly occurred at 19,200-20,150 yuan/mt this morning. The Tianjin-Shanghai price spread remained unchanged at a premium of 100 yuan/mt.
The SHFE August contract extended overnight declines and closed the morning of Friday July 12 at 19,100 yuan/mt, down 45 yuan/mt from that time on July 11.