SMM November 7: Shanghai spot zinc prices showed a significant increase this week, with the weekly average price up 30 yuan/mt WoW. As of Friday, spot premiums for ordinary domestic brands were at 60 yuan/mt against the 2512 contract, while premiums for the premium brand Shuangyan were at 70–100 yuan/mt against the 2512 contract. Shanghai zinc ingot inventory continued to decline during the week, and traders showed strong sentiment to hold prices firm. On one hand, zinc ingot arrivals in the market were limited during the week; on the other hand, as the export window for zinc ingots opened, some traders had export intentions and were less willing to sell in the domestic market. Spot zinc availability in the Shanghai market remained tight during the week, leading to a rapid rise in spot premiums. Trading among traders was active, but due to the strong performance of zinc futures, downstream enterprises were cautious about purchasing at high prices. Spot premiums are expected to maintain a fluctuating trend next week.
