[announcement] SMM officially launched the discount premium of zinc ingots in Guangdong, Tianjin and Ningbo!

SMM10 March 26: according to SMM research and customer feedback, in order to comply with the development of zinc ingots in the market and help enterprises reduce transaction costs and stabilize production, SMM officially launched the discount premium for zinc ingots in Guangdong, Tianjin and Ningbo today.

The discount premium is defined as the discount premium based on the prices of SMM0# zinc ingots and SMM1# zinc ingots, while the price of zinc in this region = the discount premium in this region + SMM0#, zinc price.

Example: the average price of SMM0# zinc ingots (Guangdong) was 19790 yuan / ton, down 140yuan / ton, and the average discount premium price of SMM0# zinc ingots (Guangdong) was-40 yuan / ton, down 10 yuan / ton.

The average price of SMM0# zinc ingots (Tianjin) is 19860 yuan / ton, down 100 yuan / ton, while the average discount premium price of SMM0# zinc ingots (Tianjin) is 30 yuan / ton, up 30 yuan / ton.

The average price of SMM0# zinc ingots (Ningbo) is 19840 yuan / ton, down 140yuan / ton, and the average discount premium price of SMM0# zinc ingots (Ningbo) is 10 yuan / ton, down 10 yuan / ton.

Methodology:

General principles of 1.SMM Price Methodology

Shanghai Nonferrous Network (hereinafter referred to as SMM) is a completely independent third-party service organization, which does not participate in any substantive transactions, but maintains close communication with the buyer or seller of the transaction as a market observer or organizer, and provides relevant services for the market. By communicating with industry insiders, SMM continuously develops, reviews and revises its methodology to adopt the most common product specifications, terms of trade and terms of trade in the industry. And pay equal attention to the normal transactions that meet the specifications and standards. SMM reserves the right to exclude any price information deemed to be unreliable or unrepresentative from its quotation judgment.

SMM publishes daily spot metal prices (or price indices, including the Chinese market, non-Chinese markets and global markets), often referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM prices (all will be published on SMM's official website www.smm.cn for inquiry). The methodology stipulates the methods and procedures for the generation and release of SMM prices, and produces and publishes SMM prices in strict accordance with the provisions of the methodology.

In order to meet the actual situation of the spot market, SMM will make necessary amendments to the SMM price methodology and announce it on SMM's official website www.smm.cn before its formal implementation. If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please check the contact information on SMM's official website www.smm.cn).

This document sets out the standard for the discount premium quotation of SMM zinc ingots in Guangdong, Tianjin and Ningbo. The purpose of SMM in formulating this standard is to establish a transparent and verifiable SMM pricing mechanism.

The SMM benchmark Management Committee also reviews the methodology and its evaluation and release process on a regular basis. The committee maintains oversight of the SMM methodology and the compilation process and ensures that the price or index reflects the physical spot market of the relevant goods as truthfully as possible. If the Committee considers that there are any problems, it will immediately point them out and propose external consultations and modifications to the methodology or process being implemented in order to improve the quality of the prices or indices published by SMM. The Committee can only propose changes to the methodology and steps used in future price or index evaluations, and it cannot change published prices or indices.

Significance of discount premium quotation for zinc ingots in 2.SMM sub-regions

In the current trade market, due to the differences in supply and demand, the price difference between regions fluctuates sharply, which leads to the lack of laws and regulations in some areas to avoid the risks brought by this fluctuation, and the upstream and downstream of the industrial chain indirectly increases a lot of transaction costs. SMM provides an objective and fair regional discount premium for South China, North China and East China markets on the basis of SMM price methodology to help the market avoid transaction risks and reduce transaction costs. After a period of market research, SMM will add five new price points on the basis of SMM's original quotation on October 26th, such as the discount premium for Guangdong zinc ingots, the discount premium for Guangdong zinc ingots, the discount premium for Tianjin zinc ingots, the discount premium for Tianjin zinc ingots, and the discount premium for Ningbo zinc ingots.

Quotation rules of discount premium for zinc ingots of 3.SMM sub-regional zinc ingots and zinc ingots

3.1 Price range

The discount premium of SMM zinc ingots and zinc ingots in Guangdong, Tianjin and Ningbo reflects the discount premium that is most likely to be traded on the basis of the price difference between SMM0# zinc ingots and SMM1# zinc ingots in the spot markets of Guangdong, Tianjin and Ningbo on the same day; this price is mainly based on the spot trading price situation of Guangdong, Tianjin and Ningbo on the same day.

3.2 announcement time

Prices are announced from 10:15 to 10:20 on each trading day.

After the price announcement, SMM will not revise or adjust the price according to the market information collected after the price announcement.

3.3 pricing basis

The quotation of discount premium for zinc ingots in SMM sub-regions is based on the discount premium of mainstream brands provided by bid-picking units before concentrated trading in the spot market on the morning of each trading day, while the price of zinc in this region = discount premium + SMM0#, zinc price in this region reflects the actual transaction price or the most likely transaction price in the region. The bidding units come from relatively fixed market participants, including zinc ingot smelters, traders and end-users. In judging the collected data, SMM will take into account the spot market, futures market, macroeconomic dynamics, enterprise information, industrial fundamentals, and other major factors (political, economic, natural, etc.), based on the most likely actual transaction price as the main basis to determine the discount premium price of zinc ingots in SMM sub-regions.

3.4 Standard acquisition method

The price collector of Shanghai Nonferrous Network collects transaction data from legitimate enterprises that are representative in the industry chain and are active in the spot market. SMM continuously evaluates the performance of each company and the accuracy of the information it has provided in the past to determine whether a company is excluded or added to the pricing unit. SMM will measure each bidder's rating based on its market behavior and the historical record of the data they provide (this rating is not made public). When the rating falls below a certain level, SMM will notify the company in writing. If the company does not improve, SMM will notify the company after 30 days that its qualification as a bidder has been exempted. If a bid-adopting unit provides wrong information to mislead the SMM price, SMM reserves the right to revoke the qualification of the bid-adopting unit immediately. SMM requires each bidder to sign a formal consent form to confirm that the price quoted to SMM is accurate and timely. This consent form also protects the trade information of these bidders. The unit that adopts the bid in the consent form may also designate a person as the contact person.

3.5 Standard acquisition process

The SMM bid takers collect prices from the bid takers from 9:15 to 10:15 every day (every trading day, which is the same as the trading day of the previous stock exchange). These price data will be recorded electronically and in writing. All paper records must be signed by the standard taker and retained for a long time.

The specific process is as follows:

4. Definition of transactions and products

4.1

4.1.1 Product name

4.1.2 main zinc ingot circulation brands and production enterprises

The following are the main common brands in circulation in each regional market:

4.2. Denomination currency and unit

The price is in RMB / ton.

4.3. Price clause

The price is a self-raised price including VAT.

4.4. Payment method

Cash transactions on the day of the transaction.

Methodology change

All markets are changing, and SMM is responsible for ensuring that the methodology for market reporting changes with market Synchronize. As a result, SMM conducts regular internal reviews of the appropriateness of the methodology based on industry feedback. SMM will follow the formal external consultation process for all substantive and non-urgent potential changes. Major changes are then announced and at least 28 days' notice is given, inviting comments from the industry, unless special circumstances, especially force majeure (natural disasters, wars, exchange bankruptcies, etc.) shorten the notice period. SMM promises to scrutinize all comments about proposed methodological changes, but in some cases it may have to change the methodology against the wishes of some market participants. In addition, SMM has a formal methodological consultation process. SMM promises to hold formal consultations on methodology every three years. The date of the last consultation and the deadline of the SMM's commitment to hold the next consultation are at the top of the methodology document.