Market Supply Shows No Improvement, Traders Continue to Hold Prices Firm [SMM Shanghai Spot Cargo Weekly Review]

SMM reported on December 5: Shanghai spot prices continued to rise this week, with the weekly average price up 55 yuan/mt WoW. As of Friday, spot premiums of ordinary domestic brands were 200-220 yuan/mt against the Jan '26 contract, while premiums for the high-priced brand Shuangyan were 260 yuan/mt against the same contract. Zinc futures prices rose significantly this week, intensifying downstream fear of high prices. Zinc ingot purchases were mostly based on order requirements and largely involved back pricing, resulting in low spot transaction activity. However, as domestic smelters continued production cuts and the zinc ingot export window remained open, Shanghai zinc ingot inventory declined further this week. Market availability of zinc ingots tightened, and traders continued to hold prices firm, leading to a continued increase in Shanghai spot premiums during the week. With no improvement in market supply, Shanghai premiums are expected to resist a significant decline next week.