Shanghai Zinc: Downstream enterprises purchase as needed, spot trades perform moderately [SMM midday comment]

SMM, September 23:

     Today, mainstream transaction prices for #0 zinc were concentrated at 26,600~26,840 yuan/mt, with no transactions for Shuangyan. Mainstream transactions for #1 zinc were at 26,530~26,770 yuan/mt. In early trading, market quotes against the SMM average price were at premiums of 70~80 yuan/mt, with no quotes against futures. In the second trading session, ordinary domestic brands were quoted at premiums of 60~80 yuan/mt against the 2610 contract, silver was quoted at a premium of 70 yuan/mt against the 2610 contract, and the high-priced Shuangyan brand had no quotes against the 2610 contract. Today, purchasing sentiment for refined zinc in the Shanghai region was 2.04, while shipment sentiment was 2.57. In the morning session, zinc prices on the futures market maintained a fluctuating trend, and downstream enterprises continued to purchase as needed. Overall spot trades performed averagely, with trader quotes in the Shanghai market basically flat compared with yesterday. However, affected by rising freight costs, delivered prices for Ex-works zinc ingot have recently increased, driving up premium prices for some downstream transactions.