SMM reported on August 7: This week, spot premiums in Shanghai were in the doldrums, with the weekly average price rising by about 10 yuan/mt WoW. As of Friday this week, ordinary domestic brands were quoted on par with the 2509 contract, while high-priced brand Shuangyan was quoted at premiums of 110-130 yuan/mt against the 2509 contract. At the beginning of the week, zinc prices weakened, and some downstream buyers took advantage of the low prices to make just-in-time procurement. However, zinc ingots continued to arrive in the Shanghai market, and coupled with a significant increase in futures prices during the week, downstream fear of high prices resurfaced, leading to a decrease in inquiries and purchases. Traders faced difficulties in selling, and spot premium quotes were lowered consecutively. Overall, transactions were mostly made after just-in-time procurement. It is expected that spot premiums will maintain a fluctuating trend next week.
