The futures market first fell and then rose, with the premium continuing to narrow [SMM Shanghai Spot Weekly Review]

SMM reported on July 4: This week, spot premiums in Shanghai continued to narrow, with a WoW decrease of 40 yuan/mt in the weekly average price. As of Friday this week, premiums for common domestic brands against the 2508 contract ranged from 130 to 140 yuan/mt, while premiums for the high-priced brand Shuangyan against the 2507 contract were 180 yuan/mt. The domestic supply in the Shanghai market was limited this week, and some traders continued to refuse to budge on prices, leading to a slight increase in spot premiums in Shanghai. However, with the arrival of Qilin zinc ingots to supplement the market, coupled with the simultaneous rise in zinc prices and weak downstream orders due to the off-season, spot purchases were mainly driven by immediate needs, and the enthusiasm for purchase was generally low, resulting in a further decline in spot premiums at the end of the week. Given the lack of improvement in consumption, it is expected that spot premiums in Shanghai will remain weak next week.

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