Shanghai Zinc: Downstream Fear of High Prices Resurfaces, Market Trading Sentiment Sluggish [SMM Midday Commentary]

SMM, September 3:

       Today, mainstream transaction prices for #0 zinc were concentrated at 26,505~26,890 yuan/mt, with Shuangyan mainly trading at 26,635~27,010 yuan/mt and #1 zinc at 26,435~26,820 yuan/mt. In the morning session, market quotes against the SMM average price stood at premiums of 50~60 yuan/mt, with no quotes against futures yet. In the second trading session, ordinary domestic brands were quoted at discounts of 50~40 yuan/mt against the 2610 contract, silver at a discount of 20 yuan/mt against the 2610 contract, and the high-priced Shuangyan brand at a premium of 80 yuan/mt against the 2610 contract. Today, the purchasing sentiment for refined zinc in the Shanghai region was 1.78, while the selling sentiment was 2.59. In the morning, SHFE zinc futures prices rebounded again, intensifying downstream enterprises' fear of high prices. Coupled with the fact that end-user orders have yet to show a trend of improvement, downstream purchasing and inquiry activity was relatively weak today. The overall spot market remained subdued, with traders adopting a laid-back approach to selling.