Shanghai Zinc: Low-Priced EXW Zinc Ingots Continue to Flow In; Downstream Enterprises Purchase as Needed [SMM Midday Review]

SMM, August 13:

       Today, mainstream transaction prices for #0 zinc were concentrated at 25,565~25,790 yuan/mt, Shuangyan traded mainly at 25,705~25,920 yuan/mt, and #1 zinc traded mainly at 25,495~25,720 yuan/mt. In early trading, the market quoted premiums of 40~50 yuan/mt against the SMM average price, with no quotes against the futures contract yet. In the second trading session, ordinary domestic brands were quoted at premiums of 10~20 yuan/mt against the 2609 contract, Baiyin was quoted at a premium of 60 yuan/mt against the 2609 contract, and the high-priced Shuangyan brand was quoted at a premium of 150 yuan/mt against the 2609 contract. Refined zinc buying sentiment in Shanghai stood at 1.82 today, and selling sentiment stood at 2.51. Today, SHFE zinc futures prices continued to consolidate at highs, and downstream enterprises mostly remained bearish. Overall inquiry interest remained weak today, and as some low-priced EXW-delivered zinc ingots continued to arrive in east China, traders generally had poor sales, and overall spot premiums were in the doldrums.