Ningbo Zinc: Downstream enterprises purchase as needed, market premium changes relatively small [SMM Midday Commentary]

SMM, September 2:

     Mainstream 0# zinc in the Ningbo market traded at approximately 26,405-26,745 yuan/mt. Conventional brands in Ningbo were quoted at a discount of 55 yuan/mt against the 2610 contract and at a premium of 40 yuan/mt against Shanghai spot prices. In Ningbo, mainstream quotes were primarily against the 2609 contract. In the first session, Yongchang, Qilin, and Anning were quoted at discounts of 60-50 yuan/mt against the 2610 contract, while Honglu-V (99.998) was quoted at a discount of 20 yuan/mt against the 2610 contract. In the second session, trader quotes remained flat compared with the previous session. Zinc prices on the futures market fell notably in the morning, but most downstream enterprises continued to expect further declines. In addition, orders at Ningbo alloy plants showed no significant improvement, so downstream enterprises continued to purchase spot cargo on an as-needed basis. Spot premiums in the market remained stable MoM.