Ningbo Zinc: Limited Market Supply Continues to Drive Premiums Higher [SMM Midday Commentary]

SMM Mar 20: In the Ningbo market, the transaction price of mainstream brand 0# zinc was around 23,710-23,950 yuan/mt. The premium for regular brands in Ningbo against the 2504 contract was 45 yuan/mt, and the premium against Shanghai spot prices was 40 yuan/mt. The main quotations in the Ningbo area were made against the 2504 contract. During the first period, Yongchang quoted a premium of 50 yuan/mt against the 2504 contract, while Qilin quoted a premium of 50-70 yuan/mt against the 2504 contract. In the second period, traders' quotes remained unchanged from the previous period. Recently, the supply in the Ningbo market was limited, with few traders selling goods. However, downstream zinc alloy factories continued to inquire about purchasing, leading to moderate overall transactions. Coupled with the futures market fluctuating downward today, traders continued to raise their spot premiums.