Shanghai Zinc: Limited Supply in Domestic Market, Premiums Remain Firm [SMM Midday Review]

Today, the mainstream transaction prices for 0# zinc were concentrated between 25,450~25,680 yuan/mt, Shuangyan brand was traded at 25,680~25,880 yuan/mt, and 1# zinc mainstream transactions were at 25,380~25,610 yuan/mt. In the early session, the market average premium was mainly 20~30 yuan/mt, with fewer quotes against the 2411 contract. In the second trading session, ordinary domestic brands were quoted at premiums of around 140~150 yuan/mt against the 2411 contract, while high-end brand Shuangyan was at premiums of around 340~350 yuan/mt. Although zinc prices rose sharply today, the Shanghai market supply remained tight for domestic brands due to long-term contract delivery, keeping prices relatively firm. Meanwhile, imported zinc ingots faced sluggish sales as downstream companies were cautious due to high zinc prices, leading to reduced premiums for sales, with overall transactions mainly among traders.