Shanghai Zinc: Downstream actively purchases at low prices, market premiums rise significantly [SMM Midday Commentary]

SMM, October 9:

     Today, mainstream transaction prices for #0 zinc were concentrated at 25,775~26,060 yuan/mt. Shuangyan had no transactions. Mainstream transaction prices for #1 zinc were 25,685~25,990 yuan/mt. In the morning session, market quotations against the SMM average price were at premiums of 80~90 yuan/mt, with no quotations against futures. In the second trading session, ordinary domestic brands were quoted at premiums of 70 yuan/mt against the 2611 contract, silver was quoted at premiums of 60 yuan/mt against the 2611 contract, and the high-priced brand Shuangyan was quoted at premiums of 280 yuan/mt against the 2611 contract. Today, the purchase sentiment for refined zinc in the Shanghai region was 2.14, and the shipment sentiment was 2.56. Overnight, zinc prices on the futures market fell significantly, reaching the psychological price level of downstream enterprises. Since last night, downstream enterprises actively purchased at lower prices, while traders continued to raise spot quotations, with overall premiums rising further MoM.