Shanghai Zinc: Some Traders Raise Offers, Overall Spot Trades Average [SMM Midday Comment]

SMM, October 8:

     Today, mainstream transaction prices for #0 zinc were concentrated at 26,175~26,505 yuan/mt, with no transactions for Shuangyan, while #1 zinc was mainly transacted at 26,105~26,435 yuan/mt. In the morning session, cargoes with invoices dated next month were quoted at premiums of 70~90 yuan/mt against the SMM average price, with no quotes against futures. In the second trading session, ordinary domestic brands were quoted at premiums of 40~50 yuan/mt against the 2611 contract, silver was quoted at a premium of 40 yuan/mt against the 2611 contract, and the high-priced Shuangyan brand had no quotes against the 2611 contract. Today, the purchasing sentiment for refined zinc in Shanghai was 2.06, and the selling sentiment was 2.43. On the first trading day after the National Day holiday, some traders were still on leave. Overall, traders in east China held firm quotes, and some spot premiums in the market rose compared with pre-holiday levels. Overall premiums increased MoM, but downstream users remained cautious. Today, spot transactions were largely need-based.