Shanghai Zinc: Fewer Shipments from Traders, Poor Market Transactions [SMM Midday Review]

SMM January 23: Today, the mainstream transaction prices of 0# zinc were concentrated at 23,645-24,100 yuan/mt, with no quotations for Shuangyan. The mainstream transaction prices of 1# zinc were at 23,575-24,025 yuan/mt. In the early trading session, the market quoted near the average price for cargoes with invoices dated this month, with quotations against the 2503 contract at 10-30 yuan/mt. During the second trading session, ordinary domestic zinc was quoted at premiums of 0-20 yuan/mt against the 2503 contract, Huize was quoted at a premium of 170 yuan/mt against the 2502 contract, while high-end brand Shuangyan had no quotations against the 2502 contract. After the Minor New Year, the number of traders shipping goods in the Shanghai market decreased significantly today, coinciding with the Chinese New Year break. Today's spot zinc transactions were mainly just-in-time procurement by enterprises that had not yet started their holiday. Zinc ingot demand showed a significant decline, and some traders continued to lower premiums to clear inventory before the holiday. Overall, market transactions were sluggish.