Futures Declined Significantly Spot Discounts Narrowed Slightly [SMM Shanghai Spot Weekly Review]

SMM August 22: This week, the spot discounts in Shanghai narrowed slightly, increasing by about 10 yuan/mt WoW. As of Friday, regular domestic brands were at a discount of 10-0 yuan/mt against the 2509 contract, while the high-end brand Shuangyan was at a premium of 100 yuan/mt against the 2509 contract. In the first half of the week, zinc prices fluctuated downward, and downstream enterprises actively priced at lower levels, leading to a slight decrease in Shanghai zinc ingot inventory. Some traders refused to budge on prices, and spot quotations edged up; however, as futures stopped falling and stabilized, wait-and-see sentiment among downstream enterprises resurfaced, and transactions became less active WoW, with insufficient upward momentum for spot premiums. With no improvement in downstream consumption, it is expected that spot quotations will maintain a fluctuating trend next week.