Shanghai Zinc: Increased Market Supply, Noticeable Decline in Premiums [SMM Midday Review]

The mainstream transaction prices for 0# zinc were concentrated between 24,870-24,100 yuan/mt, Shuangyan brand was traded at 25,080-24,310 yuan/mt, and mainstream transaction prices for 1# zinc were 24,800-24,030 yuan/mt. In the early session, the average discount for cargoes with invoices dated this month was 10-20 yuan/mt. Quotes were at premiums of around 100 yuan/mt against the 2410 contract, with few transactions. In the second trading session, ordinary domestic brand was quoted at premiums of 90-100 yuan/mt against the 2410 contract, while high-priced Shuangyan brand were at premiums of 300-310 yuan/mt. Zinc prices rose today. With the arrival of Qilin zinc ingots and traders considering increased pre-holiday shipments, market supply was ample, leading to a noticeable decline in premiums. Downstream companies had already stocked up at lower prices earlier and were cautious in purchasing after the price increase, resulting in weak market transactions.