Spot premiums dropped significantly last week. As of last Friday, premiums of domestic regular brands stood at 190-210 yuan/mt over the SHFE 2307 zinc contract, and spot premiums of Shuangyan zinc were 350-360 yuan/mt over the contract.
Premiums of imported zinc fell to 150-160 yuan/mt over the SHFE 2307 zinc contract. Downstream buyers purchased with premiums of around 140 yuan/mt. Strong zinc prices, combined with large influx of imported zinc, pushed down spot premiums noticeably last week. Downstream buyers placed orders actively around 19,500 yuan/mt. This week, spot premiums will have room to decline.
