Inflow of Imported Zinc Ingots Leads to Pull Back in Shanghai Spot Premiums [SMM Shanghai Spot Weekly Review]

SMM News on May 9: This week, spot premiums in the Shanghai region pulled back, with a WoW decrease of 50 yuan/mt from the weekly average price. As of Friday, the spot premiums for ordinary domestic brands against the 2506 contract were 580-590 yuan/mt, while the premium for the high-end brand Shuangyan against the 2506 contract was 640 yuan/mt. During the week, as contract rollover quotations were made and the price spread of nearby contracts widened, spot premiums in Shanghai rose significantly at the beginning of the week. However, with the continuous inflow of imported zinc ingots and the subsequent arrival of long-term contract shipments of domestic zinc ingots later in the week, the supply of zinc ingots in the market was replenished. With the futures market continuing to fluctuate, enterprises were cautious in purchasing spot cargoes amid high spot premiums, making just-in-time procurement throughout the week. Spot transactions were relatively weak. With the continued inflow of imported zinc ingots next week, spot premiums are expected to continue to decline.

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