Buyers hesitate over higher spot zinc offers in Shanghai

SHANGHAI, May 28 (SMM) – Downstream buyers held back from zinc purchases in the spot market in Shanghai on Monday May 28 as offer prices rose over the weekend, SMM learned.

While premiums were unchanged from last Friday, offers were higher as the SHFE 1806 zinc contract gained some 300 yuan/mt to close at 24,065 yuan/mt this morning. 

In Shanghai, #0 zinc mostly traded at 24,120-24,150 yuan/mt. The 0# common brand was offered at a premium of 90-110 yuan/mt over SHFE 1806, and the premium for 0# Shuangyan brand was 100-120 yuan/mt.

The 0# domestic brands with an invoice for May were mostly offered at a premium of 110-120 yuan/mt, while that with June’s invoices was at 100 yuan/mt due to greater supplies. 

At noon, 1# zinc traded at 24,020-24,040 yuan/mt in Shanghai. As buyers mostly took a watch-and-wait stance on rising zinc prices, trading liquidity dipped from last Friday. 

In Guangdong, trading liquidity rose from last Friday as supply was relatively tight. #0 zinc mostly traded at 24,200-24,250 yuan/mt. The Guangdong-Shanghai price spread increased by 60 yuan/mt from Friday to 70 yuan/mt on Monday. Cargoes mostly traded at a premium of 320-350 yuan/mt over the SHFE 1807 contract, flat from last Friday. 

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