Spot Consumption Remains Weak, Premiums Decline All the Way [SMM Shanghai Spot Weekly Review]

SMM February 14 News: This week, quotations in the Shanghai region dropped to near parity, down 55 yuan/mt WoW. As of this Friday, ordinary domestic brands were quoted on par with the 2503 contract, while high-end brands like Shuangyan were quoted at a premium of 250 yuan/mt against the 2503 contract. This week, zinc ingots under long-term contracts gradually arrived in the Shanghai market. In the first half of the week, zinc prices continued to decline, prompting active selling by traders. However, downstream enterprises had limited resumption of operations, and spot premiums fell sharply under just-in-time procurement. After the Lantern Festival, downstream production in east China gradually resumed. However, in the latter half of the week, zinc prices rebounded sharply from their lows, reigniting downstream enterprises' aversion to high prices. Spot trades remained dominated by transactions among traders, and spot premiums in Shanghai continued to decline. It is expected that after next week's contract delivery, warehouse warrant cargoes will flow out, and premiums may struggle to recover.

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