SHANGHAI, May 28 (SMM) – Prices of #0 zinc in China’s Tianjin will remain higher than those in Shanghai in June as maintenance at zinc smelters may reduce supply there, SMM says.
Limited supply and stable demand from galvanizers in Tianjin’s Daqiuzhuang region resulted in an over 4,000-tonne decline in Tianjin’s zinc inventories last week. As such, local prices for #0 zinc outstripped those in Shanghai, with the spreading once exceeding 100 yuan per tonne.
This week, the price gap between the two markets narrowed some with shipments from Chifeng NFC Kumba Hongye Zinc arriving in Tianjin. But maintenance operations at some smelters in Tianjin will cut local zinc output by some 10,000 tonnes in June, which SMM believes will bolster zinc prices.
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