Futures market has been rising, while spot premiums in Shanghai continue to decline [SMM Weekly Review of Shanghai Spot Market]

SMM reported on June 27: This week, the spot premiums in the Shanghai region continued to decline, with a MoM decrease of 80 yuan/mt from the weekly average price last week. As of Friday this week, the spot premiums for ordinary domestic brands against the 2507 contract were 40 yuan/mt, while the premiums for high-priced brand Shuangyan against the 2507 contract ranged from 200 to 220 yuan/mt, and the premiums for Indian brands against the 2507 contract were 40 yuan/mt. In the first half of the week, as it was near the end of the long-term contract period, the market supply of zinc ingots was limited. Some traders continued to refuse to budge on prices, and the spot premiums remained basically stable. However, as the second half of the week entered a new long-term contract cycle, more traders began to offer goods for sale. The futures market also rose steadily throughout the week. Downstream enterprises were cautious about purchasing at high prices, with low purchase willingness. Traders successively lowered their spot premium quotes to facilitate sales. Given the continued strong performance of the futures market, it is expected that spot premiums will remain weak next week.

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