SHANGHAI, Jul 31 (SMM) – Spot zinc trades continued to weaken on the last trading of July but premiums remained firm as sellers were reluctant to let go cargoes at lower prices. Hot waves deterred downstream operation and this kept consumption weak.
As Shanghai zinc give up overnight gains on the morning of Wednesday July 31, spot sellers firmed up premium to 80 yuan/mt, over the SHFE front-month August contract at noon. This compared with a premium of 60-70 yuan/mt in the previous morning.
At noon on Wednesday, traded prices of #0 zinc stood at 19,510-19,590 yuan/mt, and that of the higher-grade Shuangyan brand at 19,520-19,600 yuan/mt, with premiums at 90-100 yuan/mt over the SHFE August contract.
In the northern Chinese market of Tianjin, spot zinc also traded sluggishly amid sufficient supplies. Downstream consumers bet on lower prices of zinc and withheld from procuring. This drove spot sellers to lower offers slightly, to a premium of 30-70 yuan/mt at noon.
Trades of #0 zinc occurred at 19,460-19,570 yuan/mt, and deals for #1 zinc at 19,410-19,520 yuan/mt at noon. The Tianjin-Shanghai price spread widened from a discount of 20 yuan/mt on Tuesday, to 30 yuan/mt as of noon on Wednesday.
The SHFE August contract slid and closed the morning of Wednesday July 31 at 19,480 yuan/mt, down 145 yuan/mt from that time on Tuesday.