Spot premiums moved lower last week. As of last Friday, premiums of domestic regular brands stood at 150-170 yuan/mt over the SHFE 2307 zinc contract, and spot premiums of Shuangyan zinc were around 500 yuan/mt over the contract amid tight supply.
Premiums of imported zinc stood at 80-120 yuan/mt over the SHFE 2307 zinc contract. In the first half of the week, the premiums of imported brands dropped significantly due to the expected shipments arrivals. Tight supply kept premiums of domestic brands stable. Some traders lowered premiums for domestic cargoes in the second half of the week.
The price spread between domestic and imported zinc ingot narrowed. During the week, most trades occurred among traders as downstream buyers purchased as needed. Spot premiums will remain weak this week.
