Shanghai Zinc: Futures market declined significantly, premium struggled to rise [SMM Midday Review]

SMM reported on July 8: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,025-22,255 yuan/mt, with Shuangyan zinc trading at 22,045-22,275 yuan/mt and 1# zinc trading at 21,955-22,185 yuan/mt. In the morning session, the market quoted premiums of 50-70 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 170-180 yuan/mt against the 2508 contract, Honglu-v zinc was at a premium of 160 yuan/mt against the 2508 contract, Huize zinc was at a premium of 140 yuan/mt against the 2507 contract, and the high-end brand Shuangyan zinc was quoted at premiums of 180-220 yuan/mt against the 2508 contract. The domestic supply in the market was limited, and some traders maintained high quotes. Although the futures market significantly declined and fell below 22,000 yuan/mt in the morning, some downstream buyers purchased at lower prices, but the rest largely maintained their just-in-time demand, and the spot premiums struggled to rise.