Traders Actively Offload Cargoes, Premiums Continue to Decline [SMM Shanghai Weekly Spot Review]

SMM reported on January 17: This week, spot premiums in the Shanghai region declined steadily, down 130 yuan/mt WoW from the weekly average price. As of this Friday, spot premiums for ordinary domestic brands against the 2502 contract stood at 355 yuan/mt, while high-end brand Shuangyan recorded spot premiums of 700 yuan/mt against the 2502 contract. This week, zinc ingots under long-term contracts gradually arrived in the Shanghai market, and the number of trading suppliers increased. However, some downstream buyers had already started their holidays, leading to a decline in overall demand for raw material purchases. Additionally, the Shanghai-Guangdong price spread widened in the latter half of the week, causing some Guangdong zinc ingots to flow into the east China market. The influx of low-priced zinc ingots impacted the Shanghai market, and suppliers faced difficulties in selling. Consequently, they continuously lowered spot premiums for zinc ingots. Spot premiums are expected to decline further next week.

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