Shanghai Zinc: SHFE Zinc Futures Prices Continue to Rise, Market Sentiment Sluggish [SMM Midday Review]

SMM, August 27:

       Today, #0 zinc mainstream transaction prices were concentrated at 26,395~26,695 yuan/mt, Shuangyan mainly traded at 26,545~26,835 yuan/mt, and #1 zinc mainstream transaction prices were at 26,325~26,625 yuan/mt. In the morning session, cargoes with invoices dated next month were quoted at premiums of 30~50 yuan/mt against the SMM average price, with no quotations against the futures yet. In the second trading session, ordinary domestic zinc was quoted at premiums of 0~10 yuan/mt against the 2609 contract, silver was quoted at a premium of 50 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. Today, Shanghai’s refined zinc buying sentiment was 1.84, and shipment sentiment was 2.59. In the morning, SHFE zinc futures prices continued to rise MoM, and downstream remained wary of high prices, with almost no inquiries or purchases. Today, the spot market atmosphere remained sluggish, traders faced sluggish shipments, basically adopting a laid-back approach to offerings and quotations, and the market was filled with strong wait-and-see sentiment.