Adequate Zinc Ingot Supply and Continued Spot Discounts [SMM Ningbo Spot Weekly Review]

SMM August 22 News:

This week, spot discounts in Ningbo lingered at low levels, basically flat WoW. As of Friday, spot prices against the 2509 contract were at a discount of 50 to 20 yuan/mt, on par with the Shanghai premium, which remained stable during the week. This week, zinc ingots from Jiulong and Yongchang arrived successively, ensuring ample supply in the market. Although futures prices fell sharply in the first half of the week, some traders continued to offload stocks at low prices, keeping spot quotations stable at low levels. In the second half of the week, futures prices fluctuated. Downstream enterprises, having built up some inventory by purchasing at lower prices earlier, showed little enthusiasm for further spot purchases, leading to continued weakness in the zinc ingot premium. More zinc ingots from Jiulong and Qilin are expected to arrive over the weekend, and it is unlikely that premiums will see significant improvement next week.