Shanghai Zinc: Weak premium support amid oversupply

Today, the mainstream transaction prices for 0# zinc were concentrated between 22,480-22,870 yuan/mt, with Shuangyan trading at 22,670-23,040 yuan/mt, and 1# zinc trading at 22,410-22,800 yuan/mt. In the early session, the market average premium was 10 yuan/mt, but due to poor transactions, the premium fell to 0 yuan/mt, with the premium over the 2408 contract at around 0-30 yuan/mt, and the average price being the main transaction price. In the second trading session, the ordinary domestic quotes were at a premium of around 0-20 yuan/mt over the 2408 contract, while the high-end brand Shuangyan was at a premium of around 190-200 yuan/mt over the 2408 contract. Although zinc prices plummeted today, the price spread between the current-month and next-month contracts increased traders' profits, leading to more shipments. Additionally, the import window opened, resulting in more quotes for imported zinc ingots. Meanwhile, downstream companies still had a bearish sentiment due to the unexpected drop, leading to weak premium support in Shanghai, with potential risks of further decline.