Downstream enterprise demand was weak, spot cargo transactions were poor this week [SMM Shanghai Spot Weekly Review]

SMM, June 5 –

        This week, spot premiums in Shanghai maintained a fluctuating trend, basically flat WoW from last week’s average price. As of this Friday, ordinary domestic brands were quoted at a discount of 90–40 yuan/mt against the 2607 contract, while the high-end brand Shuangyan was quoted at a premium of 60–70 yuan/mt against the 2607 contract. This week, traders in the Shanghai market actively sold and offered, but entering June, orders from downstream zinc enterprises continued to weaken. Moreover, overall zinc prices fluctuated at highs within the week, and downstream enterprises’ willingness to purchase on point pricing was poor. Spot transactions underperformed within the week, and the inventory of zinc ingots in Shanghai continued to accumulate. Overall premiums were in the doldrums, and spot premiums are expected to remain weak next week.