Futures market under high pressure, premium continues to weaken [SMM Shanghai Spot Weekly Review]

SMM July 25 News: This week, the Shanghai spot premium continued to decline, with the weekly average price dropping by nearly 40 yuan/mt WoW. As of Friday this week, the premium for ordinary domestic brands against the 2508 contract was 50 yuan/mt, while the premium for the high-priced brand Shuangyan against the 2508 contract was 80 yuan/mt. At the beginning of the week, the futures market rose significantly, causing downstream buyers to remain cautious and continue to wait and see. With poor spot cargo sales, spot premiums were adjusted downwards consecutively. However, under low premiums, traders increased their purchases, and some traders' sentiment to raise prices resurfaced. In the second half of the week, spot premiums stabilized and fluctuated, and it is expected that premiums will remain weak next week.