SMM January 16:
Spot premiums in Ningbo pulled back significantly this week, down 75 yuan/mt WoW. As of Friday, spot prices in Ningbo were at a premium of 70 yuan/mt against the 2602 contract and a premium of 40 yuan/mt against Shanghai prices, with the premium against Shanghai narrowing gradually during the week. In the off-season, orders from downstream zinc enterprises in Ningbo were weak recently. Combined with zinc prices climbing significantly above 25,000 yuan/mt this week, downstream enterprises were reluctant to inquire or purchase due to high prices. Overall spot transactions were poor during the week, and spot premiums continued to be adjusted downward. Premiums are expected to have further downside room next week.
