#1 Zinc Ingot Mostly Pre-sold, Premium Continues to Rise [SMM Ningbo Spot Weekly Review]

SMM December 5 News:

      Spot premiums in Ningbo continued to rise this week, up 40 yuan/mt WoW from the weekly average price. As of Friday, spot prices in Ningbo were at a premium of 175 yuan/mt against the 2601 contract and a premium of 100 yuan/mt against Shanghai prices, fluctuating at highs against Shanghai prices during the week. Arrivals in the Ningbo market showed no improvement this week, and most of the cargoes were pre-sold, resulting in scarce spot offers in Ningbo during the week. Downstream enterprises showed divergent performances: some downstream enterprises that had pre-purchased zinc ingots held certain raw material inventories and had little willingness to purchase high-priced spot cargo, but some enterprises short of materials purchased as needed to maintain normal production, pushing spot premiums higher throughout the week. Ningbo premiums are expected to remain high next week.