Spot zinc cargo supply in Shanghai remained tight during the week, with attention on subsequent cross-regional flow of zinc ingots [SMM Shanghai Spot Weekly Review].

SMM December 12: Shanghai spot offers continued to rise this week, with the weekly average price up 15 yuan/mt WoW. As of Friday, spot premiums of common domestic brands against the 2601 contract were 200-220 yuan/mt, while the high-priced brand Shuangyan had no offers against the 2601 contract. As the price spread among the three regions widened, some zinc ingots from east China and north China recently flowed to the east China market, but the volume was relatively limited and did not significantly supplement the Shanghai market. Zinc ingot supply in Shanghai remained tight during the week. Although zinc prices rose significantly at the end of the week, traders continued to hold prices firm, and overall spot premiums remained high. Downstream enterprises continued to shy away from high prices, with spot purchases basically on a need-to basis. Spot trading was mainly dominated by traders during the week. As zinc ingots from other regions continue to arrive in east China, spot premiums are expected to be unlikely to continue rising next week.