Downstream Players Hold Some Raw Material Inventory, and Weekly Transactions Remained Weak [SMM Ningbo Spot Weekly Review]

SMM News on March 6:

     This week, spot discounts in Ningbo widened, while the weekly average price was basically flat WoW. As of this Friday, spot prices against the 2604 contract in Ningbo were at a discount of 70 yuan/mt, with a premium of 30 yuan/mt against Shanghai. The premium against Shanghai fluctuated during the week. Although downstream enterprises resumed production in a concentrated manner mid-week due to the Lantern Festival, their pre-holiday raw material inventory had not been fully consumed. Downstream inquiries and purchases were limited during the week, resulting in weak overall transactions. Meanwhile, ample market supply prompted traders to repeatedly lower spot quotations to drive shipments, and premiums continued to decline throughout the week. Consumption is expected to gradually recover next week, and spot discounts are expected to narrow accordingly.