SMM January 16: Shanghai spot premiums continued to decline this week, with the weekly average price down 50 yuan/mt WoW. As of Friday, spot premiums for common domestic brands were 40-60 yuan/mt against the 2602 contract, while premiums for the high-priced brand Shuangyan were 180-260 yuan/mt against the 2602 contract. Shanghai zinc ingot inventory continued to accumulate. Many traders in the Shanghai market offered cargoes this week, but zinc prices kept rising to a one-year high, causing downstream buyers to hold off due to high prices. Traders faced poor sales and continuously lowered Shanghai spot zinc premium quotes. Although zinc prices pulled back toward the end of the week, most downstream buyers remained bearish, leading to limited improvement in spot transactions. Spot premiums are expected to remain in the doldrums next week.
