Shanghai Zinc: Downstream Gradually Starts Holiday, Poor Market Transactions [SMM Midday Review]

SMM January 14: Today, mainstream transaction prices for #0 zinc were concentrated at 24,635-24,830 yuan/mt, with no quotations for Shuangyan. Mainstream transaction prices for #1 zinc were at 24,565-24,760 yuan/mt. In the early trading session, the market quoted spot premiums of around 80-100 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 520 yuan/mt against the 2502 contract, while Baiyin was quoted at premiums of 520 yuan/mt against the 2502 contract. High-end brand Shuangyan had no quotations against the 2502 contract. As the year-end approaches, traders in the Shanghai market continued to actively sell, coupled with downstream sectors in the east China market gradually entering the holiday mode starting this week. Traders consecutively lowered spot premium quotations in Shanghai. However, enterprises' willingness to purchase spot cargoes significantly declined today, and spot market transactions weakened MoM. Spot premiums are expected to continue declining in the future.