Impact of Low-Priced Imported Zinc Ingots, Ningbo Premium Drops Significantly [SMM Ningbo Spot Weekly Review]

SMM, May 16:

This week, spot premiums in Ningbo have declined significantly, dropping by 200 yuan/mt compared to the weekly average price last week. As of Friday, spot prices against the 2506 contract in Ningbo were quoted at a premium of 265 yuan/mt, and against the SHFE, they were at a premium of 40 yuan/mt, with the price spread against the SHFE maintaining a fluctuating trend. During the week, a large volume of imported zinc ingots, such as SMC and AZ, flowed into the Ningbo market. Downstream enterprises preferred to purchase low-priced imported zinc ingots, showing low interest in inquiring about and purchasing domestically produced zinc ingots. Domestic traders in the market faced difficulties in selling their goods, leading to a downward adjustment in spot premium quotes during the week. Spot transactions basically met immediate demand. If downstream consumption does not improve, spot premiums may continue to weaken next week.

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