[East China refined zinc market] According to SMM, zinc ingot inventory in east China remained elevated, with ample overall supply in the market. However, downstream zinc consumption was gradually weakening. Coupled with zinc futures prices fluctuating at highs during the week, spot zinc ingot transactions in the market performed poorly.

[Weak Downstream Consumption in Off-Season, Spot Premiums Edged Down During the Week]: Spot premiums in Ningbo edged down this week, with the weekly average price declining 15 yuan/mt WoW. As of this Friday, spot prices against the 2607 contract were quoted at a discount of 50 yuan/mt, with a premium of 30 yuan/mt against the Shanghai premium. The premium against the Shanghai premium maintained a fluctuating trend during the week.

[Tianjin Zinc Ingot Premiums Edged Up]: Spot premiums in the Tianjin area rose this week, edging up 5 yuan/mt WoW. As of this Friday, domestic regular brands were quoted at a discount of 50-80 yuan/mt against the 2606 contract, premium brands at a discount of 0-30 yuan/mt against the 2606 contract, and Tianjin at a discount of around 90 yuan/mt against Shanghai.

As of May 26, the Shanghai-LME zinc price ratio stood at 6.97, continuing its downward trend from 7.4 recorded in late March, which has led to a widening import loss of refined zinc ingots in China. According to calculations by Shanghai Metals Market (SMM), the current import loss of China’s refined zinc ingots has expanded to approximately RMB 3,800 per metric ton of metal.

[Tianjin Zinc Ingot Premiums Declined, Market Trading Was Weak]: Spot premiums in Tianjin declined this week, down 5 yuan/mt WoW. As of this Friday, domestic ordinary brands were quoted at a discount of 40-80 yuan/mt against the 2606 contract, premium brands were quoted at a discount of 0-40 yuan/mt against the 2606 contract, and Tianjin was quoted at a discount of 80 yuan/mt against Shanghai.

[Tianjin Zinc Ingot Spot Premiums Continued to Rise, Market Trading Remained Weak]: Spot premiums in the Tianjin area rose this week, up 20 yuan/mt WoW. As of this Friday, China's common brands were quoted at a discount of 60-80 yuan/mt against the 2606 contract, premium brands were quoted at a discount of 10-50 yuan/mt against the 2606 contract, and Tianjin was quoted at a discount of 70 yuan/mt against Shanghai.