Supply of spot zinc grows, consumption slow to recover

SHANGHAI, Feb 13 (SMM) – Supplies of spot zinc such as Chinhong and Shuangyan brands increased, but saw limited downstream purchases as demand resumed slowly in Shanghai on the morning of Wednesday February 13. 

Transactions of imported low-priced cargoes including YP and Belgium's brands picked up in the second trading session in the morning. Overall trades changed little from the morning of February 12. 

On the morning of Wednesday February 13 in Shanghai, #0 zinc traded at 21,520-21,580 yuan/mt, and saw offers of #1 zinc at 21,450-21,500 yuan/mt.  

Traders firmed up offers as the delivery day approached. This morning, offers of #0 zinc were at discounts of up to 10 yuan/mt over the SHFE 1902 contract, while offers for Chihong and Shuangyan brands stood at a premium of 150-160 yuan/mt. 

In Guangdong, premiums dipped some 50 yuan/mt from Tuesday, to 20-40 yuan/mt over the SHFE 1903 contract, as sellers were eager to destock. Traded prices of #0 zinc mostly occurred at 21,470-21,530 yuan/mt this morning. The Guangdong-Shanghai price spread remained at a discount of 20 yuan/mt at noon. 

The SHFE 1903 contract traded rangebound and settled at 21,445 yuan/mt at the end of this morning trading session, down 175 yuan/mt from that time on Tuesday. The SHFE 1902 contract traded some 65 yuan/mt higher than the 1903 contract at noon.