Tight supplies improve spot zinc trades in Shanghai

Published: Jul 16, 2019 15:50

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But trades in Tianjin weakened as cautious sentiment deterred downstream consumers

SHANGHAI, Jul 16 (SMM) – Spot zinc traded briskly in Shanghai on the morning of Tuesday July 16 as traders purchased actively amid tight supplies for the delivery of long-term contracts.

Sellers hiked offers to a premium of 80-100 yuan/mt, against the SHFE front-month August contract, in the second morning session, with trades mostly at a premium of 80-90 yuan/mt. These compared with premiums of 50-70 yuan/mt in the previous morning.

At noon on Tuesday July 16, traded prices of #0 zinc stood at 19,300-19,320 yuan/mt, with that of the higher-grade Shuangyan and Chihong brands at 19,310-19,340 yuan/mt.

In the northern Chinese market of Tianjin, however, trades weakened from the previous day as cautious sentiment deterred downstream consumers. Deals mostly occurred for cheaper products.

Offers of #0 zinc common brands stood at a premium of 70-120 yuan/mt over the SHFE August contract at noon of Tuesday July 16, with prices at 19,280-19,350 yuan/mt. The Tianjin-Shanghai price spread narrowed to flat, from a premium of 40 yuan/mt on Monday.

The SHFE August contract pared overnight gains and closed the morning of Tuesday July 16 at 19,235 yuan/mt, down 15 yuan/mt from that time on Monday.

Market commentary Futures movement Spot zinc

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