Shanghai Spot Rises to Parity as Enterprises Purchase on Dips [SMM Shanghai Spot Weekly Review]

SMM February 28 News: This week, spot quotes in the Shanghai region rose to around parity, remaining basically flat compared to the weekly average price of last week. As of this Friday, ordinary domestic brands quoted on par with the 2503 contract, while high-end brand Shuangyan quoted a premium of 120 yuan/mt against the 2504 contract. Zinc ingots gradually arrived in the Shanghai region, and zinc prices fell sharply at the beginning of the week. Market traders actively sold off, while downstream enterprises took the opportunity to purchase at low prices, resulting in moderate spot transactions and a subsequent rise in spot premiums. However, as the futures market remained at low levels, downstream buyers continued to hold a bearish outlook on zinc prices, reducing their purchase willingness, which led to weaker market transactions and stable spot premiums. With zinc prices declining, spot premiums are expected to rise further next week.

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