SMM December 19 News:
Spot premiums in Ningbo continued to rise this week, up 40 yuan/mt WoW from the weekly average price. As of Friday, spot prices in Ningbo were at a premium of 235 yuan/mt against the 2601 contract and a premium of 130 yuan/mt against Shanghai prices, with the premium against Shanghai continuing to widen intra-week. Zinc ingot arrivals in Ningbo remained limited during the week. In the first half of the week, futures zinc prices pulled back significantly, prompting downstream enterprises to actively purchase on dips, leading to moderate spot transaction activity. Consequently, traders continuously raised spot offers, driving spot premiums higher. In the second half of the week, zinc prices shifted to a fluctuating trend. Downstream enterprises had largely completed their earlier dip-based purchasing, leading to a weakening in purchase willingness. However, as market zinc ingot inventories gradually digested, overall spot premiums remained high. Spot premiums are expected to maintain a fluctuating trend next week.
