SMM Review of Spot Zinc Market In Ningbo

Last week, the mainstream price for 0# zinc in Ningbo concentrated at a premium of 70-130 yuan/mt over the SHFE zinc 2308 contract, with a discount of 40-50 yuan/mt compared to Shanghai. The premium over Shanghai has remained stable, but the spot prices have shown a downward trend. There has been a continuous influx of imported zinc, coupled with stable supply from smelters, resulting in a tendency for zinc ingot supply to exceed demand, making it difficult for holders to support prices.

Meanwhile, the marginal impact of power rationing in the Jiangsu-Zhejiang region on end-consumer demand has continued to show, leading to a tightening of procurement for secondary zinc consumers.

Overall, the spot trading atmosphere has been sluggish, and premiums have continued to decline. Considering the relatively stable supply of zinc ingots in the short term, it is expected that spot premiums in the Ningbo may continue to be weak this week.

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