Shanghai Zinc: Futures Market Rises, Market Buying Sentiment Remains Weak [SMM Midday Review]

SMM reported on December 26: Today, the mainstream transaction prices of 0# zinc were concentrated at 26,265-26,425 yuan/mt, with no quotations for Shuangyan. The mainstream transaction prices of 1# zinc were at 26,195-26,355 yuan/mt. In the early trading session, the market spot premiums over the average price were around 150-170 yuan/mt, with almost no quotations following the futures market. During the second trading session, ordinary domestic zinc was quoted at premiums of 480-500 yuan/mt against the 2501 contract, Huize was quoted at a premium of 450 yuan/mt against the 2501 contract, while high-end brand Shuangyan had no quotations against the 2501 contract. Entering the new long-term contract cycle, some zinc ingot long-term contract arrivals began quoting prices. However, as many traders were closing accounts at the end of the year, coupled with the continued rise in the futures market, the overall market buying sentiment was weak. Suppliers mainly focused on selling, leading to a decline in spot premiums in the market.