Shanghai Market: Spot Discount of Zinc Narrowed over AVG

SHANGHAI, May 13(SMM) - Spot prices of zinc 0# in Shanghai market stood at 25,410-25,480 yuan/mt, Shuangyan at 25,540-25,550 yuan/mt. Zinc 0# regular brand with premiums of 50-70 yuan/mt over the June contract, Shuangyan at 120-200 yuan/mt. Zinc 1# mainstream prices stood at 25,340-25,410 yuan/mt. Zinc prices moved rangebound at low. The market transactions were thin, leading to a slight decrease in spot premiums. Spot premiums quoted at 50-70 yuan/mt over SHFE zinc 2206 contract while the AVG followed the rise of market transactions. Traders quoted at 20-0 yuan/mt over the average price.

In the second trading session, holders of regular brands of zinc ingots quoted at premiums of 50-60 yuan/mt over the June contract.

In general, the market was muted in receiving goods in downstream, mainly due to the sophisticated picking up process in warehouses in Shanghai as well as the high freight costs. The market prices followed the declining premiums. But the AVG transactions improved after more traders receiving goods.