SHANGHAI, Oct 24 (SMM) – Premiums of spot zinc eased on the morning of October 24 in Shanghai, as demand for cargoes with October’s invoices weakened a day before the scheduled upgrading of the value-added tax invoice system.
In Shanghai, the #0 common brands were mostly offered at a premium of 100 yuan/mt, over the SHFE November contract at noon, down from as high as 130 yuan/mt on Wednesday’s morning.
Premiums of higher-grade Chihong and Shuangyan zinc also came in at 100 yuan/mt, with that of imported AZ and SMC at 80-100 yuan/mt.
Quotes as low as 90 yuan/mt over the SHFE November contract were heard in the market during the second trading session this morning.
At noon in Shanghai, #0 zinc traded at 18,910-18,960 yuan/mt, and #1 zinc at 18,840-18,890 yuan/mt.
In the northern Chinese market of Tianjin, spot zinc continued to trade poorly, as the ongoing environmental production curbs in the north and higher futures prices kept consumers on the sideline.
At noon of October 24, offers of #0 common brands zinc stood at a premium of 70-150 yuan/mt over the SHFE November contract, suggesting a widened Tianjin-Shanghai price premium of 30 yuan/mt, up from 20 yuan/mt on Wednesday.
Trades of #0 zinc occurred at 18,900-20,310 yuan/mt, and deals for #1 zinc at 18,850-18,950 yuan/mt at noon in Tianjin.
The SHFE November contract tracked LME zinc higher and closed the morning of October 24 at 18,875 yuan/mt, up 0.11% from that time on Wednesday.