Shanghai Zinc: Spot Trading Sluggish, Premiums Slip MoM [SMM Midday Commentary]

SMM July 23 News:

       Today, #0 zinc mainstream transaction prices concentrated in 24,710~24,915 yuan/mt, Shuangyan mainstream transaction prices were 24,850~25,045 yuan/mt, and #1 zinc mainstream transaction prices were 24,640~24,845 yuan/mt. In the morning session, quotes against the SMM average price were at premiums of 20~30 yuan/mt, with no quotes against the futures contract yet. During the second trading session, ordinary domestic brand quotes against the 2608 contract were at premiums of 20~30 yuan/mt, Silver was quoted at a premium of 100 yuan/mt against the 2608 contract, and the high-end brand Shuangyan was quoted at a premium of 160 yuan/mt against the 2608 contract. Today, the buying sentiment for refined zinc in the Shanghai region was 1.96, and the selling sentiment was 2.60. SHFE zinc futures prices continued to rise today, and downstream enterprises, wary of high prices, reduced their inquiries. Overall spot transactions were sluggish, and traders mostly lowered their spot quotes to facilitate sales, leading to a decline in market premiums on the day.