Spot Premiums For Zinc Fluctuated At Lows In Tianjin Last Week

Spot premiums fluctuated at lows last week. As of last Friday, the premiums stood at 170-220 yuan/mt for regular brands over SHFE 2307 contract, 200-230 yuan/mt for high-priced Zijin zinc. Discounts of zinc prices in Tianjin widened to 90 yuan/mt against Shanghai prices.

In the first half of the week, the quotation was made against the SHFE 2307 zinc contract. Spot quotes rose, affected by the price spread between the SHFE front-month and SHFE next-month zinc contract. As a result, downstream buyers bought goods as needed. In the second half of the week, shipments were sluggish due to rapid increase in zinc prices and sufficient downstream raw material inventories.

Spot quotes gradually fell. It is expected that this week, spot premiums will meet resistance.