【SMM Flash News】Southeast Asia SHG Zinc CIF Premiums Decline

Southeast Asian SHG zinc ingot CIF premiums have continued to decline recently. According to SMM data, as of July 21, premiums in both the Malaysian and Indonesia markets stood at USD$100–128/mt, averaging USD$114/mt, down notably from early July.

The decline was mainly driven by weak spot demand. Downstream buyers in Southeast Asia continue to rely primarily on annual contracts, resulting in limited spot restocking demand, fewer new inquiries and scarce concluded transactions. Sellers have therefore gradually lowered offers to facilitate spot sales. Meanwhile, some China-brand zinc ingots have entered the market at lower premiums, with recent transactions and workable levels mostly reported at USD$80–100/mt, placing pressure on mainstream offers.

Premium differentials between brands remain. International mainstream and more widely accepted brands continue to command relatively firm offers, but higher-priced deals have become more difficult to conclude amid insufficient buying interest. In the near term, Southeast Asian zinc premiums are expected to remain under pressure as long-term contract coverage stays high and spot demand shows no clear improvement. However, actual transaction levels may continue to vary depending on brand, shipment timing and quotation period.