Shanghai Zinc: Reluctance to budge on prices persists, trading remains sluggish [SMM Midday Review]

SMM reported on July 3: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,425-22,590 yuan/mt, with Shuangyan zinc trading at 22,475-22,620 yuan/mt and #1 zinc trading at 22,355-22,520 yuan/mt. In the morning session, the market quoted premiums of 70-90 yuan/mt against the SMM average price, with fewer quotations against the futures market. During the second trading session, quotations for ordinary domestic zinc were at premiums of 200 yuan/mt against the 2508 contract, Honglu-v at premiums of 110 yuan/mt against the 2507 contract, Huize at premiums of 150 yuan/mt against the 2507 contract, and the high-end brand Shuangyan at premiums of 230 yuan/mt against the 2508 contract. The supply of domestic zinc ingots in the Shanghai market was limited, and some traders continued to show reluctance to budge on prices, with the upward adjustment against the average price continuing to rise. However, the futures market rose MoM, and downstream buyers were hesitant to inquire and purchase at high prices, resulting in poor overall spot cargo transactions.