Shanghai Zinc: Impact of Low Import Prices, Shanghai Premium Continues to Decline [SMM Midday Review]

SMM News on June 13: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,185-22,370 yuan/mt, with Shuangyan zinc trading at 22,275-22,470 yuan/mt, and 1# zinc trading mainly at 22,115-22,300 yuan/mt. In the morning session, the market quoted premiums of 30-50 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 premiums of 260-280 yuan/mt against the 2507 contract, while Baiyin zinc was quoted at a premium of 350 yuan/mt against the 2507 contract, Spanish zinc at a premium of 200 yuan/mt against the 2507 contract, and the high-end brand Shuangyan was quoted at premiums of 350-380 yuan/mt against the 2507 contract. The continuous influx of low-priced imported zinc ingots has continued to impact domestic zinc transactions. Today, the spot premium quotations from market traders continued to decline, with some traders taking advantage of this to offload their inventory. The extent to which domestic zinc prices float above the average price pulled back to around 20/30 yuan/mt. However, with the futures market fluctuating, downstream enterprises maintained their just-in-time demand, and transactions remained generally lackluster. Overall, trading was still dominated by interactions among traders. It is expected that after the delivery is completed next week, premiums may continue to decline.