Shanghai Zinc: Premiums Down MoM, Spot Cargo Transactions Weaken [SMM Midday Review]

SMM reported on July 9: Today, the mainstream transaction prices for 0# zinc were concentrated in the range of 22,125-22,290 yuan/mt, with Shuangyan zinc trading at 22,175-22,340 yuan/mt and 1# zinc trading at 22,055-22,220 yuan/mt. In the morning session, the market was quoted at premiums of 40-60 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 130 yuan/mt against the 2508 contract, Honglu-v at premiums of 170 yuan/mt against the 2508 contract, Huize at premiums of 140 yuan/mt against the 2508 contract, and the high-priced brand Shuangyan was quoted at premiums of 170-180 yuan/mt against the 2508 contract. The futures market rebounded significantly compared to yesterday, with downstream buyers showing lower enthusiasm for purchases today after having bought at lower prices previously. Traders faced difficulties in selling, leading to a downward adjustment in spot premiums, and overall trading activity deteriorated MoM.