SHANGHAI, Jul 25 (SMM) – Spot zinc trades thinned on the morning of Thursday July 25 in Shanghai as downstream consumers withheld from purchasing at the end of a month. This weighed on spot premiums of higher-quality zinc to close that of standard-grade products.
In Shanghai, the #0 common brands were offered at a premium of 60-70 yuan/mt, over the SHFE front-month August contract at noon of Thursday, down some 10 yuan/mt from the previous morning. Premiums of higher-grade Chihong and Shuangyan zinc slid to 70-80 yuan/mt, from a high of 100 yuan/mt on Wednesday.
Purchases by traders accounted for most transactions on the morning of Thursday in Shanghai, with procurement by downstream consumers weakening.
In the northern Chinese market of Tianjin, spot zinc also traded poorly, and this pushed down spot premiums while futures prices limitedly changed from the previous morning. At noon of July 25, offers of #0 common brands zinc stood at a premium of 30-80 yuan/mt over the SHFE August contract, down from a high of 100 yuan/mt in early trades.
Trades of #0 zinc occurred at 19,310-19,380 yuan/mt, and deals for #1 zinc at 19,260-19,330 yuan/mt at noon. The Tianjin-Shanghai price spread remained unchanged from Wednesday, at a discount of 20 yuan/mt.
The SHFE August contract hovered rangebound and closed the morning of Thursday July 25 at 19,290 yuan/mt, down 5 yuan/mt from that time on Wednesday.