Downstream enterprises reported poor orders, and premiums dropped back slightly [SMM Ningbo Spot Market Weekly Review]

SMM January 9:

      Spot premiums in Ningbo dropped back slightly this week, down 10 yuan/mt WoW. As of Friday, spot prices in Ningbo were at a premium of 180 yuan/mt against the 2602 contract and a premium of 90 yuan/mt against Shanghai prices, while the premium against Shanghai prices maintained a fluctuating trend during the week. Zinc ingot supply in the Ningbo market remained limited this week. Although zinc prices retreated from highs in the latter half of the week, orders from downstream zinc alloy plants weakened due to a significant contraction in the aluminum-zinc price spread. Enterprises continued purchasing as needed, resulting in relatively sluggish spot transactions in Ningbo and a subsequent adjustment in spot premiums. Off-season consumption performed poorly, and the decline in spot premiums is expected to continue.