Market supply was limited, and spot discounts continued to narrow [SMM Ningbo Spot Market Weekly Review]

SMM September 5 news:

Spot discounts in Ningbo continued to narrow this week, up 25 yuan/mt WoW. As of Friday, spot prices against the 2510 contract stood at a discount of 25 yuan/mt in Ningbo, while the premium against Shanghai futures rose to 40 yuan/mt, with the Shanghai premium widening persistently during the week. As market inventories were gradually consumed, few traders offered cargoes in the Ningbo market early in the week. Subsequently, mid-week futures prices dropped significantly, prompting downstream buyers to actively purchase at lower levels, resulting in robust spot transactions. Spot premiums in Ningbo climbed successively, but the arrival of Kirin zinc ingots toward the weekend capped further gains. Spot premiums are expected to struggle for significant recovery next week.