SMM December 25: Shanghai spot premiums pulled back this week, with the overall price center basically flat WoW. As of Friday, spot premiums for common domestic brands were 140 yuan/mt against the 2601 contract, while premiums for the high-priced brand Shuangyan were 380 yuan/mt against the 2601 contract. Approaching year-end, some Shanghai traders closed their books for settlement and actively sold off inventory during the week. However, downstream consumption was in the off-season, with limited purchasing of zinc ingots, leading to sluggish spot market transactions and a continuous decline in spot premiums throughout the week. As new annual long-term contracts have not yet commenced, spot supply in the Shanghai market is expected to remain limited next week, making a significant pullback in spot premiums unlikely.
