Shanghai Zinc: Traders Stand Firm on Quotes, Downstream Enterprises Purchase Based on Rigid Demand [SMM Midday Review]

SMM News on May 7: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,740 to 23,030 yuan/mt, with Shuangyan zinc trading at 22,840 to 23,130 yuan/mt, and 1# zinc trading mainly at 22,670 to 22,960 yuan/mt. In the morning session, spot premiums against the average price were quoted at 80 to 150 yuan/mt, with almost no quotations against the futures market. In the second trading session, quotations for ordinary domestic zinc against the 2505 contract were at premiums of 220 to 250 yuan/mt, Honglu-v against the 2505 contract was at a premium of 220 yuan/mt, Huize against the 2506 contract was quoted at a premium of 600 yuan/mt, and the high-end brand Shuangyan against the 2506 contract was also quoted at a premium of 600 yuan/mt. Today, there were fewer traders offering goods in the market. With weak supply, spot premiums in Shanghai continued to rise. However, downstream enterprises had built up certain inventory through stockpiling in the early stage, and the futures market maintained a fluctuating trend. Enterprises showed low interest in purchasing and inquiring about prices, resulting in poor overall market transaction performance.