Tianjin Zinc: Weak Demand, Downstream Dominated by Long-Term Contracts [SMM Midday Review]

SMM July 29: In the Tianjin market, #0 zinc ingot traded mainly at 24,550-24,700 yuan/mt, Zijin traded at 24,680-24,780 yuan/mt, #1 zinc ingot traded around 24,540-24,640 yuan/mt, Zijin was quoted at a premium of 20-30 yuan/mt against the 2608 contract, Huxin was quoted at 25,970 yuan/mt, #0 zinc ingot was quoted at a discount of 50-120 yuan/mt against the 2608 contract, and the Tianjin market was at a discount of around 90 yuan/mt against the Shanghai market. As of the midday close, the high-end brand Zijin was quoted at a premium of around 30 yuan/mt against the 2608 contract, and Xinzi was quoted at a discount of 60-70 yuan/mt against the 2608 contract. Today, the refined zinc purchasing sentiment in the Tianjin area stood at 1.91, and the selling sentiment at 2.49. Futures continued to consolidate at highs; with weak consumption, downstream buyers were cautious amid high prices, mainly drawing down inventory. Traders kept their offer premiums largely stable. Overall market trading was moderate today.