Shanghai Zinc: Price Spread of Nearby Months Narrows, Downstream Players Continue to Wait and See [SMM Midday Review]

SMM News on June 5: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,950 to 23,070 yuan/mt, with Shuangyan zinc trading between 22,970 and 23,070 yuan/mt, and 1# zinc trading mainly between 22,880 and 23,000 yuan/mt. In the morning session, the market quoted premiums of 120 to 150 yuan/mt against the average price, with no quotes against the spot price. During the second trading session, quotations for ordinary domestic zinc were at premiums of 600 to 620 yuan/mt against the 2507 contract, while Baiyin zinc was quoted at a premium of 240 yuan/mt against the 2506 contract, Huize zinc at a premium of 630 yuan/mt against the 2507 contract, and the high-end brand Shuangyan at a premium of 620 yuan/mt against the 2507 contract. The price spread for nearby months narrowed, leading to a decrease in Shanghai spot premiums today. However, downstream buyers remained on the sidelines, and transactions remained sluggish despite just-in-time procurement, with trading activity still dominated by traders.