Downstream orders weakened, and the premium in Ningbo declined accordingly [SMM Weekly Review of Spot Cargo in Ningbo]

SMM News on July 11:

This week, spot premiums in Ningbo have been on a downward trend, decreasing by 25 yuan/mt WoW from the weekly average price. As of Friday this week, spot premiums against the 2508 contract in Ningbo stood at 50 yuan/mt, with a premium of 10 yuan/mt against the SHFE. Spot premiums against the SHFE maintained a fluctuating trend during the week. Early in the week, zinc prices on the futures market dropped significantly below 21,900 yuan/mt, prompting some downstream enterprises to purchase at low prices. However, with numerous traders selling in the Ningbo market, spot premiums struggled to rise. Subsequently, zinc prices rebounded from their lows in the latter half of the week, reigniting fear of high prices among downstream enterprises. Coupled with weakening orders during the off-season, spot transactions deteriorated, leading to a decline in spot premiums. It is expected that spot premiums in Ningbo will continue to be in the doldrums next week.

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