Contango pulled back significantly during the week, with downstream purchases made cautiously [SMM Shanghai Spot Weekly Review]

SMM News on May 16: This week, spot premiums in the Shanghai region have pulled back significantly, with a WoW decrease of 210 yuan/mt from the weekly average price. As of Friday this week, premiums for common domestic brands against the 2506 contract were quoted at 250-270 yuan/mt, while premiums for the high-end domestic brand Shuangyan against the 2506 contract were 500 yuan/mt, and premiums for SMC against the 2506 contract were 260 yuan/mt. As the delivery date approaches, the price spread between nearby months has narrowed sharply. Coupled with the low-price sales of imported zinc ingots, this has impacted the transaction volume of domestic spot zinc. Downstream participants are bearish on subsequent premiums, and the futures market has also been rising continuously. Enterprises have been cautious in inquiring about prices and making purchases, basically maintaining just-in-time procurement. Spot premiums in Shanghai have been sliding throughout the week, and it is expected that spot premiums may continue to decline next week.

》Subscribe to view historical SMM metal spot prices