SHANGHAI, Oct 8 (SMM) – The Shanghai market saw improving spot zinc transactions on the morning of the first trading day after the National Day holiday, as traders restocked for the fulfilment of long-term contracts.
The futures prices of zinc held at relatively low levels, and this also boosted downstream buying this morning.
At noon on Tuesday October 8, sellers in Shanghai raised premiums to 110-120 yuan/mt for #0 common brands, against the SHFE October contract, and to 150 yuan/mt for higher-quality Shuangyan and Chihong brands.
Traded prices of #0 zinc stood at 18,760-18,855 yuan/mt, and that of #1 zinc at 18,690-18,785 yuan/mt.
In the northern Chinese market of Tianjin, traders stood on the sidelines with downstream consumers purchasing on demand. This drove sellers to ease offers and narrowed the Tianjin-Shanghai price spread to a premium of 150 yuan/mt, from a premium of 180 yuan/mt on September 30.
At noon of October 8, trades of #0 zinc occurred at 18,850-20,380 yuan/mt, and deals for #1 zinc at 18,800-18,980 yuan/mt in Tianjin.
The SHFE October contract moved higher and closed the morning of Tuesday October 8 at 18,750 yuan/mt, up 0.11% from that time on September 30.