Spot #0 zinc was quoted with premiums of 215-385 yuan/mt over SHFE 2307 zinc contract last week, and discounts in Guangdong stood at 60 yuan/mt to premiums of 20 yuan/mt against Shanghai prices. Large volumes of arriving shipments resulted in a significant accumulation of spot inventories.
Trades under small orders were quiet due to pessimism among most downstream buyers. Most of the spot trades occurred under long-term contracts. Spot premiums rose briefly before falling after the delivery of the SHFE June zinc contract. Spot premiums are expected to weaken this week.
