Shanghai Zinc: Typhoon weather affected warehouse shipments, and market trading was sluggish today [SMM Midday Comment]

SMM, August 10:

       Today, mainstream transaction prices of #0 zinc were concentrated at 25,475~25,625 yuan/mt, Shuangyan mainly transacted at 25,625~25,765 yuan/mt, and #1 zinc mostly transacted at 25,405~25,555 yuan/mt. In early trading, market quotations were reported at premiums of 50 yuan/mt against the SMM average price, with no quotations offered against the futures contract for now. During the second trading session, quotations for ordinary domestic brands against the 2609 contract were at premiums of 20~30 yuan/mt, while the silver brand quotations against the 2609 contract were at premiums of 50 yuan/mt. The high-priced Shuangyan brand was quoted at premiums of 170 yuan/mt against the 2609 contract. In the Shanghai area today, purchase sentiment for refined zinc stood at 1.84, and shipment sentiment was at 2.46. Today, SHFE zinc futures prices consolidated at highs, and downstream enterprises mostly remained bearish, with poor orders leading to scarce inquiries and purchases. Coupled with the impact of typhoon weather on cargo pick-up at Shanghai warehouses, with some traders in the market on holiday, overall spot trades of zinc ingots were sluggish, and spot premiums showed little change.