Spot Zinc Premiums in Tianjin to Increase on Downstream Stockpiling before the Labour Day Holiday

SHANGHAI, Apr 24 (SMM) - Spot zinc premiums in Tianjin lacked upward momentum last week. As of last Friday, the premiums stood at 10-20 yuan/mt for regular brands over SHFE 2305 contract, 40-50 yuan/mt for high-priced Zijin zinc and -70 yuan/mt against the Shanghai market. In the first half of the week, zinc prices fluctuated at a high level, and the premiums slumped to around 0 yuan/mt. However, the galvanising companies only maintained rigid-demand purchases amid poor sales and low profits. In the second half of the week, zinc prices fluctuated above 22,000 yuan/mt, and the downstream companies made a small amount of restocking. The bearish sentiment held by downstream sectors and the high deliverable spot supply in the market suppressed the premiums. The downstream companies will purchase some goods before the Labour Day holiday this week, which will push up the spot premiums.