Shanghai Zinc: Futures Market Declines Significantly, Some Downstream Buyers Price on Dips [SMM Midday Review]

SMM February 25 News: Today, the mainstream transaction prices of 0# zinc were concentrated at 23,550-23,690 yuan/mt, with no transactions for Shuangyan. The mainstream transaction prices of #1 zinc were at 23,480-23,620 yuan/mt. In the early trading session, the market quoted spot premiums of 0-10 yuan/mt against the average price, with fewer quotes against futures. During the second trading session, ordinary domestic zinc was quoted at discounts of 20-0 yuan/mt against the 2503 contract, Huize was quoted at a premium of 100 yuan/mt against the 2503 contract, Baiyin was quoted at parity against the 2503 contract, and high-priced brand Shuangyan had no quotes against the 2503 contract. Shanghai warehouse inventories continued to increase, and the futures market saw a significant decline compared to yesterday. Some market traders stood firm on quotes and raised spot premium quotations. Although some downstream enterprises took advantage of the low prices to make purchases, most downstream enterprises procured raw materials based on orders, resulting in limited overall improvement in transactions.