Zinc Premiums in Shanghai to Grow this Week

SHANGHAI, Mar 27 (SMM) - The spot prices in Shanghai were stable last week. As of last Friday, the premiums stood at 0-20 yuan/mt for regular brands over the April contract, and at 80-90 yuan/mt for Shuangyan zinc. Since downstream enterprises had already stocked two weeks ago when zinc prices had fallen, they mainly picked up cargoes last week or signed long-term orders on dips. The focus of the market last week was the delivery of long-term orders, thus the social inventory dropped significantly, and traders were reluctant to sell at low prices. It is expected that premiums in Shanghai will improve this week with lower social inventory and narrowed spread between front-month and next-month SHFE zinc contracts.