News Current location: Home - News
Higher futures prices sideline spot zinc consumers despite lower premiums
2019-5-27

May 27 (LTIT) –Transactions of spot zinc slowed in Shanghai on the morning of Monday May 27 as greater growth in the SHFE front-month June contract, compared with the SHFE July contract, grew caution across downstream consumers.

 

Being eager to destock, traders lowered premiums to 110 yuan/mt at noon, against the SHFE June contract, from a premium of 130-140 yuan/mt in early trades. But this failed to bolster downstream purchases as consumers mostly depleted their in-plant stocks.

 

This morning in Shanghai, #0 zinc traded at 20,680-20,700 yuan/mt, and saw traded prices of #1 zinc at 20,620-20,650 yuan/mt.

 

Premiums of higher quality Chihong and Shuangyan brands stood at 160-220 yuan/mt over the SHFE June contract this morning, compared with 110-140 yuan/mt for #0 common brands.

 

In Guangdong, consumption also weakened as deliveries for long-term contracts were close to an end and most downstream buyers held sufficient in-plant inventories. Premium stood at 380-400 yuan/mt over the SHFE 1907 contract, and at 90-100 yuan/mt against the SHFE 1906 contract.

 

Traded prices of #0 zinc mostly occurred at 20,610-20,650 yuan/mt this morning. The Guangdong-Shanghai price spread widened to a discount of 70 yuan/mt, from a discount of 40 yuan/mt last Friday. 

 

The SHFE 1906 contract strengthened and settled at 20,585 yuan/mt at the end of the morning trading session on Monday May 27, up 125 yuan/mt from that time on Friday. Its price spread with the SHFE 1907 contract widened to 340 yuan/mt at noon, after the July contract climbed 45 yuan/mt on the day to 20,245 yuan/mt. 

WWW.LINGTONG.INFO is China's most authoritative information provider on non-ferrous scrap metals. Once registered, your account will be available on both Chinese and English websites. More information is waiting for you on www.lingtong.info . Register now for free!