Some downstream sectors have begun holidays, spot trades sluggish [SMM Shanghai Spot Weekly Review]

SMM January 30: Shanghai spot premiums continued to fall this week, with the weekly average price down 35 yuan/mt WoW. As of Friday, premiums and discounts for common domestic brands were at a discount of 30 yuan/mt against the 2603 contract, while the premium for the high-priced brand Shuangyan was 20 yuan/mt against the 2603 contract. Shanghai zinc ingot inventory saw relatively small changes this week. Traders actively offered spot cargoes, but with the approaching Chinese New Year, some downstream consumers began holidays. Coupled with the sharp rise in zinc futures prices, downstream orders were poor, and overall spot trades were sluggish. Spot premiums declined significantly during the week, and Shanghai premiums and discounts are expected to remain in the doldrums next week.