Spot zinc trades in the Shanghai market remained sluggish in the week to Wednesday August 8 as high prices of futures deterred downstream consumers that mostly purchased as needed.
The SHFE 1809 contract traded robustly in the morning and closed?at 21,705 yuan/mt at the end of the morning trading session, about 155 yuan/mt higher from Tuesday.
In Shanghai, the 0# common brand was offered at a premium of 190-220 yuan/mt over the 1809 contract, and the higher-grade Shuangyan brand was offered at 210-230 yuan/mt. Both stood 20-30 yuan/mt lower from offers on Tuesday. Less interest in higher-priced cargoes limited the traded price gaps between the 0# common brand and the Shuangyan brand.?The #0 zinc mostly traded at 21,920-21,960 yuan/mt before noon.
In Guangdong, downstream consumers also hesitated on high prices of futures after they restocked earlier this week. Premiums of 0# zinc dipped by 50 yu