Traders continued to hold prices firm, with Shanghai premiums rising WoW [SMM Shanghai Spot Weekly Review]

SMM Jul 24:

       Shanghai spot zinc premiums moved higher this week, with the weekly average price up 40 yuan/mt WoW. As of this Friday, ordinary domestic brands were quoted at premiums of 20 yuan/mt against the 2608 contract, while the high-priced brand Shuangyan was quoted at premiums of 160 yuan/mt against the 2608 contract. In the first half of the week, SHFE zinc prices consolidated. Downstream enterprises saw weak orders during the off-season, and spot purchases were largely need-based. However, traders carried forward their firm pricing sentiment from the previous week, driving spot premiums higher. Subsequently, warrants flowed into the Shanghai market, and coupled with a notable rise in SHFE zinc prices, fear of high prices intensified among downstream enterprises, leading to quieter spot transactions and a pullback in spot premiums. Next week, premiums are expected to hold steady.