Spot Discounts Widened During the Week; Focus on Next Week’s Recovery [SMM Shanghai Spot Weekly Review]

SMM News on March 6: This week, Shanghai spot discounts stayed at low levels, with the weekly average price up 5 yuan/mt WoW. As of this Friday, mainstream domestic brands were at discounts of 70–60 yuan/mt against the 2604 contract, while the high-priced brand Shuangyan was quoted at spot premiums of 0–30 yuan/mt against the 2604 contract. This week, Shanghai zinc ingot inventory rose cumulatively to a three-year high. Traders remained active in offering shipments and quotes, but downstream enterprises showed weak purchasing sentiment. Overall spot trading was sluggish, and zinc ingot spot premiums continued to be marked down. Although zinc prices pulled back toward the end of the week and some downstream buyers fixed prices on dips, actual trading improved only limitedly. Spot discounts narrowed slightly. With downstream consumption recovering, spot premiums are expected to have some upside potential next week.