Continuous Inflow of Imported Zinc Ingots Leads to Decline in Shanghai Premium [SMM Weekly Review of Shanghai Spot Cargo]

SMM News on June 6: This week, the spot premiums in the Shanghai region continued to decline, with a WoW decrease of 25 yuan/mt in the weekly average price. As of Friday this week, the spot premiums for ordinary domestic brands against the 2507 contract were 380-420 yuan/mt, while the premium for the high-end brand Shuangyan against the 2507 contract was 500 yuan/mt, and the premium for SMC against the 2506 contract was 160 yuan/mt. At the beginning of the week, there was a limited supply of domestic zinc ingots, and traders' spot premium quotes were relatively firm. However, as imported zinc ingots continued to flow in, downstream enterprises showed a higher willingness to purchase low-priced imports. Additionally, the price spread between nearby months also narrowed significantly, leading traders to lower their quotes. Nevertheless, as downstream enterprises entered the off-season, spot transactions were generally sluggish amid rigid demand for purchases next week. As the delivery date approaches, it is expected that spot premiums may continue to weaken next week.

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