Spot Premiums in Shanghai to Fall Somewhat This Week Owing to the Warrant Delivery

SHANGHAI, Apr 17 (SMM) - Spot zinc premiums in Shanghai stood at 80-100 yuan/mt for regular brands over the SHFE 2305 contract, and at 160-180 yuan/mt for Shuangyan zinc. Traders restocked more goods early last week when zinc prices were low. Downstream companies also increased their purchasing volume, and the average traded price was in premiums of 30 yuan/mt. Premiums for regular brands over the SHFE 2305 contract grew to 120 yuan/mt. In the second half of the week, as the futures prices rebounded and the delivery of the SHFE 2304 zinc was approaching, the shipments increased and the premiums went down. Downstream enterprises had a strong wait-and-see sentiment amid rising zinc prices. Spots were mainly traded among traders. SMM believes that the spot premiums in Shanghai will fall somewhat this week owing to the warrant delivery.