Zinc Sellers Sold Off Their Cargoes to Generate Cash

In Guangdong, #0 zinc spot was quoted with premiums of 170 yuan/mt over SHFE 2306 zinc contract, and discounts of Guangdong against Shanghai prices stood at around 40 yuan/mt.

Trades were brisk in the first half of last week. The price spread between the SHFE front-month and next-month contracts expanded amid concentrated downstream purchasing, pushing up spot premiums after the delivery of the former contract.

In the second half of the week, zinc prices continued to fall sharply. Trades gradually weakened. Sellers were selling off their cargoes to generate cash. Spot premiums stabilised. Overall, spot premiums strengthened last week.