Shanghai Zinc: Spot price spread premium pulled back MoM [SMM Midday Review]

SMM reported on July 4: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,415-22,530 yuan/mt, with Shuangyan zinc trading at 22,485-22,590 yuan/mt and 1# zinc trading at 22,345-22,460 yuan/mt. In the morning session, the market quoted premiums of 40-60 yuan/mt against the SMM average price, with fewer quotes against the futures market. During the second trading session, the quotes for ordinary domestic zinc were at premiums of 130-140 yuan/mt against the 2508 contract, Honglu-v was quoted at a premium of 100 yuan/mt against the 2507 contract, Huize was quoted at a premium of 100 yuan/mt against the 2507 contract, and the high-priced brand Shuangyan was quoted at a premium of 180 yuan/mt against the 2507 contract. As the week drew to a close, there were many traders selling in the market. The continued high futures prices dampened buying sentiment, with downstream buyers maintaining just-in-time demand due to concerns over high prices. Spot cargo transactions were sluggish, and spot premiums pulled back accordingly.