Ample supplies, firm offers keep spot zinc trades weak

SHANGHAI, Jul 23 (SMM) – Spot zinc trades were quiet in Shanghai on the morning of Tuesday July 23 as traders withheld from purchasing after the delivery for long-term contracts and as supplies grew in the market. 

At noon of Tuesday July 23, premiums of #0 common brands stood at 70-80 yuan/mt, against the SHFE front-month August contract, flat from the morning of July 22. Transactions weakened from the previous morning as downstream consumers depleted their stocks on higher prices of Shanghai zinc. 

On the morning of Tuesday July 23, trades of #0 zinc occurred at 19,380-19,410 yuan/mt, and that of the higher-grade Shuangyan and Chihong brands at 19,390-19,420 yuan/mt, with premiums at 80-100 yuan/mt over the SHFE August contract. 

In the northern Chinese market of Tianjin, spot zinc also traded sluggishly as bearish sentiment on prices kept downstream consumers from purchasing. Sufficient supplies prompted sellers to cut premiums by 20-40 yuan/mt from early trades, to 40-100 yuan/mt over the SHFE August contract at noon. Cheap cargoes with lower quality accounted for most trades. 

Traded prices of #0 zinc common brands stood at 19,340-19,420 yuan/mt, and deals for #1 zinc at 19,290-19,370 yuan/mt at noon. The Tianjin-Shanghai price spread remained flat.

The SHFE August contract retreated after climbed and closed the morning of Tuesday July 23 at 19,310 yuan/mt, down 15 yuan/mt from that time on Monday.