Shanghai Zinc: Downstream Enterprises Made Purchases When Prices Dipped, Overall Spot Cargo Transactions Improved MoM [SMM Midday Commentary]

SMM August 19 news:

        Mainstream transaction prices of #0 zinc were concentrated in the range of 25,250~25,430 yuan/mt today. Shuangyan mainly traded at 25,370~25,550 yuan/mt, and #1 zinc mainstream transactions were at 25,180~25,360 yuan/mt. In the morning session, market quotations against the SMM average price were at a premium of 70 yuan/mt, with no quotes against the futures contract yet. In the second trading session, quotations for common domestic brands against the 2609 contract were at premiums of 30 yuan/mt, silver against the 2609 contract at premiums of 50 yuan/mt, and the high-priced Shuangyan brand against the 2609 contract at premiums of 150 yuan/mt. Today, the purchase sentiment for refined zinc in Shanghai was 2.3, and the shipment sentiment was 2.7. Today, SHFE zinc futures prices fell significantly MoM, reaching the psychological price levels of downstream enterprises. Downstream factories continuously fixed prices starting from last night, and overall spot transactions improved MoM in the morning. Traders actively offered shipment quotations, and overall spot premiums for zinc ingots in the market edged up slightly.