SMM January 23: Shanghai spot premiums fluctuated at lows this week, with the weekly average price down 5 yuan/mt WoW. As of Friday, spot premiums for common domestic brands stood at 70-90 yuan/mt against the SHFE 2602 contract, while those for the premium brand Shuangyan were at 160-190 yuan/mt against the same contract. In the first half of the week, zinc futures continued to decline, prompting some downstream consumers to make fixed-price purchases, which improved spot market transactions and drove spot premiums higher. However, by the end of the week, zinc futures surged again. As downstream users had already built up stockpiles earlier, wait-and-see sentiment intensified, traders faced difficulties in selling, and spot premiums pulled back again. With pre-holiday orders gradually weakening, Shanghai spot premiums are expected to remain in the doldrums next week.
