Spot Zinc Premiums in Shanghai are Unlikely to Grow Palpably

SHANGHAI, Mar 20 (SMM) - Shanghai: Spot premiums were mainly (-5) - 5 yuan/mt over the average SMM zinc price. As of last Friday, spot premiums stood at 10-20 yuan/mt for regular brands over SHFE 2304 zinc, and high-priced Shuangyan was quoted with premiums of 60-80 yuan/mt. Downstream companies purchased on dips when zinc prices fell slightly early last week. Besides, the transactions among traders improved near the delivery of SHFE 2303 zinc, but the downstream enterprises still had a bearish sentiment. As the overseas credit risk intensified near the weekend, the zinc prices crashed to around 22,000 yuan/mt, attracting downstream purchases. The market activity improved rapidly, and the premiums climbed slightly. However, downstream companies reduced the purchases with the rise in futures prices last Friday, dragging down the premiums. The premiums in Shanghai are unlikely to grow palpably this week since the downstream companies have restocked enough raw materials.