Higher futures prices, stable offers weigh on spot zinc trades

SHANGHAI, Mar 6 (SMM) – Higher prices of futures and stable offers from sellers sidelined downstream consumers of spot zinc in Shanghai on the morning of Wednesday March 6. Some buyers restocked on March 5, which this also lowered overall trades today. 

This morning in Shanghai, #0 zinc traded at 22,070-22,120 yuan/mt, and saw traded prices of #1 zinc at 21,900-21,980 yuan/mt. 

At noon, offers of #0 zinc stood flat to a premium of 20 yuan/mt over the SHFE 1903 contract, compared with a discount of 20 yuan/mt to a premium of 20 yuan/mt on the previous morning. 

Premiums of higher quality Chihong and Shuangyan brands stood at 20-30 yuan/mt this morning, compared with 20-40 yuan/mt on the morning of Tuesday March 5. 

In Guangdong, offers grew some 20 yuan/mt from Tuesday, up to a premium of 20 yuan/mt over the SHFE 1904 contract, as sellers were unwilling to let go cargoes at lower prices. This, together with higher prices of futures, also deterred downstream purchases. 

Traded prices of #0 zinc mostly occurred at 22,010-22,070 yuan/mt this morning. The Guangdong-Shanghai price spread stood at a discount of 70 yuan/mt, expanding from 50 yuan/mt on Tuesday. 

The SHFE 1904 contract strengthened and settled at 21,995 yuan/mt at the end of this morning trading session, up 55 yuan/mt from that time on Tuesday. The SHFE 1903 contract traded some 65 yuan/mt higher than the 1904 contract at noon.