Spot zinc premiums narrow on reluctant buyers

SHANGHAI, May 8 (SMM) – In China's spot zinc market on Tuesday May 8, smelters were keener to sell and lowered premiums as the SHFE zinc 1806 contract climbed up in the morning. Buyers mostly purchased as needed. 

In Shanghai, #0 zinc mostly traded at 23,990-24,120 yuan/mt. The 0# common brands were offered at a premium of 80-160 yuan/mt over the SHFE 1806 contract with 0# Shuangyan at a premium of 120-160 yuan/mt. Premiums narrowed from 180-220 yuan/mt and 220-240 yuan/mt respectively from the previous day. Most #1 zinc traded at 23,950-24,050 yuan/mt. 

In Guangdong, #0 zinc mostly traded at 23,950-23,980 yuan/mt. The Guangdong-Shanghai price spread remained flat from the previous day, at a discount of 50 yuan/mt. Premiums stood at 50-100 yuan/mt over the SHFE 1806 contract, down 50 yuan/mt from the previous day. However, few transactions were seen due to lacklustre demand downstream.

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