Shanghai Zinc: Traders Reluctant to Sell, Premiums Rise MoM [SMM Midday Review]

SMM reported on May 27: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,750 to 23,115 yuan/mt, with Shuangyan zinc trading at 22,960 to 23,265 yuan/mt, and 1# zinc trading mainly at 22,680 to 23,045 yuan/mt. In the morning session, the market quoted premiums of 80 to 100 yuan/mt against the average price, with no quotes against the futures market. In the second trading session, the quotations for ordinary domestic zinc were at a premium of 300 yuan/mt against the 2506 contract, SMC's delivered quotations were at a premium of 330 yuan/mt against the 2506 contract, Spanish zinc was at a premium of 220 yuan/mt against the 2506 contract, and the high-end brand Shuangyan was quoted at a premium of 450 yuan/mt against the 2506 contract. Today, the market expressed concerns about the impact of subsequent maintenance work at smelters in South China, leading to renewed reluctance among traders to sell. Spot premiums rose significantly. However, as the futures market rose compared to yesterday, downstream buyers largely remained on the sidelines, showing low purchase willingness and inquiring about prices. Spot trades were mainly conducted among traders.