Shanghai zinc: SHFE zinc futures prices rose significantly, downstream users were afraid of high prices and hardly made inquiries or purchases [SMM Midday Comment].

SMM August 21 News:

       Today, mainstream transaction prices for #0 zinc were concentrated at 25,555~25,770 yuan/mt, Shuangyan mainly traded at 25,685~25,900 yuan/mt, and #1 zinc mainstream transactions were at 25,485~25,700 yuan/mt. In the early session, the market quoted at premiums of 50~60 yuan/mt against the SMM average price, with no quotations against the futures available. In the second trading session, ordinary domestic brands quoted at a premium of 30 yuan/mt against the 2609 contract, Silver quoted at a premium of 60 yuan/mt against the 2609 contract, and high-price brand Shuangyan quoted at a premium of 150 yuan/mt against the 2609 contract. Today, the purchase sentiment for refined zinc in Shanghai was 1.98, and the shipment sentiment was 2.7. In the morning, SHFE zinc futures prices rose significantly MoM. Downstream enterprises had strong fear of high prices. Combined with earlier purchases at lower prices via forward pricing, plants had some raw material inventory. Overall market transactions were sluggish today, traders had difficulty selling, and premiums edged down accordingly.