Spot premiums moved at lows last week. As of last Wednesday, premiums of domestic regular brands stood at 200-210 yuan/mt over the SHFE 2307 zinc contract, and spot premiums of Shuangyan zinc were around 400 yuan/mt over the contract. Premiums of imported zinc stood at around 130 yuan/mt over the SHFE 2307 zinc contract.
The price spread between domestic and imported zinc ingots expanded. Some traders raised prices for long-term contracts. But spot premiums lacked ability to rise due to large influx of imported zinc ingot and the absence of improvement in downstream consumption. Spot premiums will have room to fall this week in view of additional shipments arrivals of imported zinc ingots.