Shanghai Zinc: Suppliers Raise Spot Premiums, Downstream Purchases on Just-in-Need Basis [SMM Midday Review]

SMM, January 8: Today, the mainstream transaction prices of 0# zinc were concentrated at 25,070-25,260 yuan/mt, with no quotations for Shuangyan. The mainstream transaction prices of 1# zinc were at 25,000-25,190 yuan/mt. In the early trading session, the market spot premiums were around 330 yuan/mt against the average price, with almost no follow-up quotations. During the second trading session, ordinary domestic zinc was quoted at premiums of around 700 yuan/mt against the 2501 contract, Peruvian zinc was quoted at premiums of 600 yuan/mt against the 2502 contract, and Baiyin zinc was quoted at premiums of 600-680 yuan/mt against the 2501 contract. High-end brand Shuangyan had no quotations against the 2501 contract. Today, the Shanghai spot supply remained unimproved. Suppliers raised spot premium quotations, but recently Zijin zinc started flowing into downstream markets in east China, and imported zinc ingots continued to arrive, providing some replenishment to the downstream market. However, as the Chinese New Year holiday approaches, some downstream orders weakened, overall buying sentiment was low, and market transactions were still mainly driven by downstream restocking for rigid demand.