Shanghai Zinc: Downstream Maintains Just-in-Time Demand, Low Purchase Willingness [SMM Midday Review]

SMM News on May 29: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,840 to 23,000 yuan/mt, with Shuangyan zinc trading between 22,950 and 23,110 yuan/mt, and 1# zinc trading between 22,770 and 22,930 yuan/mt. In the morning market, cargoes with invoices dated next month were quoted at premiums of 70 to 80 yuan/mt against the average price, with no quotes against the futures market. During the second trading session, quotations for ordinary domestic zinc were at premiums of 270 yuan/mt against the 2506 contract, SMC was quoted at premiums of 250 to 260 yuan/mt against the 2506 contract, Huize was quoted at a premium of 350 yuan/mt against the 2506 contract, and the high-end brand Shuangyan was quoted at a premium of 380 yuan/mt against the 2506 contract. Today, traders in the Shanghai market continued to refuse to budge on prices, with the uplift against the average price remaining relatively high. Spot premiums remained stable, but the futures market maintained a fluctuating trend. Prices for some zinc ingots delivered from mills were also relatively low. Downstream purchase willingness for domestic self pick-up zinc ingots was low, with spot transactions mainly meeting rigid demand. Overall trading was still dominated by traders.