Futures rose first and then fell, with the discount in the doldrums [SMM Shanghai Spot Weekly Review]

SMM reported on August 15: This week, the Shanghai spot premium was in the doldrums, with the weekly average price pulling back by around 25 yuan/mt WoW. As of Friday this week, the discount for ordinary domestic brands against the 2509 contract was 10 yuan/mt, while the premium for the high-end brand Shuangyan against the 2509 contract ranged from 70 to 100 yuan/mt. In the first half of the week, futures zinc prices fluctuated upward, leading downstream consumers to reduce purchases due to high prices. Traders continuously lowered their spot offers to facilitate sales. In the second half of the week, futures zinc prices pulled back continuously. By the end of the week, some traders in the market refused to budge on prices, but enterprises had poor orders during the off-season, with low willingness to purchase raw materials. Zinc ingot purchases were basically maintained at just-in-time levels, and spot transactions did not see significant improvement. The upward momentum for spot premiums was insufficient, and it is expected that spot premiums will remain weak next week.