Shanghai Zinc: Market Suppliers Continue to Hold Prices Firm; Shanghai Spot Premiums Uptrend Persists [SMM Midday Review]

SMM, July 21:

       Today, mainstream transaction prices for #0 zinc were concentrated at 24,355~24,490 yuan/mt. Shuangyan recorded no transactions, while #1 zinc mainstream transactions were at 24,285~24,420 yuan/mt. In the morning session, spot cargo was quoted at premiums of 50~60 yuan/mt against the SMM average price, with no quotes against futures. In the second trading session, ordinary domestic brands were quoted at a premium of 70 yuan/mt against the 2608 contract, silver was quoted at a premium of 100 yuan/mt against the 2608 contract, and the high-priced brand Shuangyan had no quotes against the 2608 contract. Today, the purchase sentiment for refined zinc in the Shanghai region was 2.1, and the shipment sentiment was 2.57. SHFE zinc futures prices continued to decline today, prompting some downstream buyers to purchase at low prices, but others remained bearish, with no further improvement in overall transactions. Meanwhile, shipments in the Shanghai market were limited, and some suppliers continued to raise their spot premium quotes, driving market premiums higher. The SMM #0 zinc ingot price fell 95 yuan/mt MoM to 24,325 yuan/mt.