Shanghai Zinc: Traders Dump Cargoes to Clear Inventory, Shanghai Spot Premiums Halved [SMM Midday Review]

SMM January 20: Today, the mainstream transaction prices of 0# zinc were concentrated at 24,245-24,510 yuan/mt, with Shuangyan trading at 24,685-24,930 yuan/mt, and the mainstream transaction prices of 1# zinc at 24,175-24,440 yuan/mt. In the early trading session, the market quoted at premiums of -30~-10 yuan/mt against the average price, and at premiums of 200 yuan/mt against the 2502 contract. During the second trading session, ordinary domestic zinc was quoted at premiums of 160~180 yuan/mt against the 2502 contract, Huize was quoted at a premium of 200 yuan/mt against the 2502 contract, and the high-priced brand Shuangyan was quoted at a premium of 600 yuan/mt against the 2502 contract. Today, some traders cleared inventory at year-end, leading to a sharp drop in spot premiums in Shanghai. However, as the peak holiday season for downstream enterprises in east China approaches, the demand for zinc ingots has significantly weakened. Although some enterprises restocked due to rigid demand, overall market transactions were mediocre.