Downstream rigid demand purchase, premium continues to pull back [SMM Shanghai Spot Weekly Review]

SMM News on May 23: This week, spot premiums in the Shanghai region continued to pull back, with a WoW decrease of 80 yuan/mt from the weekly average price. As of Friday this week, premiums for common domestic brands against the 2506 contract were quoted at 230-260 yuan/mt, while premiums for the high-end brand Shuangyan against the 2506 contract were 450 yuan/mt, and premiums for SMC against the 2506 contract were 250 yuan/mt. Zinc prices maintained a fluctuating trend this week, with limited zinc ingot supply in the market. Some traders still held a sentiment of refusing to budge on prices. However, downstream enterprises had built up certain inventory through purchases in the earlier period. Although they took advantage of low prices to make purchases this week, overall purchases remained at necessary levels. Trading activity was generally moderate this week, and spot premiums subsequently declined. It is expected that premiums may continue to slide next week.

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