Tianjin Zinc Ingot Premiums: Supply-Demand Ease Continues, Premiums Will Remain Under Pressure [SMM Analysis]

Published: Jul 31, 2026 13:39

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In July, the Tianjin zinc ingot market continued to show a pattern of ample supply and weak demand. Regional spot circulating resources were relatively sufficient, while downstream purchasing enthusiasm was insufficient, leading to mediocre market trading performance. Spot premiums remained in discount, and the supply-demand imbalance was still prominent.

Supply side, at the end of July, smelters in north China maintained stable overall production. Although some enterprises conducted routine maintenance, the production reduction was limited, having a relatively small impact on zinc ingot supply in Tianjin. Meanwhile, inventories accumulated earlier still needed to be absorbed, market circulating supply was relatively ample, and traders had a strong willingness to sell. To facilitate transactions, they generally maintained discount quotations, and overall supply pressure in the spot market still existed.

Demand side, at the end of July, downstream consumption showed no significant improvement. Overall orders of galvanizing enterprises in Tianjin performed moderately, affected by weak end-use demand and limited profit margins. Enterprise purchases were still dominated by just-in-time procurement for restocking, with insufficient willingness to proactively stockpile. After entering August, the traditional consumption off-season will persist. High temperatures and the slow pace of end-user construction mean that downstream operating rates are expected to hardly see significant improvement, overall zinc consumption will remain low, and the inventory destocking pace will be slow.

In summary, the oversupply pattern in the Tianjin zinc ingot market is expected to be difficult to change in August. The supply side will remain ample, the demand side will lack significant improvement, and market transactions will still be dominated by just-in-time procurement. Spot premiums in Tianjin are expected to continue to remain in discount, and it will be difficult to see significant recovery in the short term. Subsequently, attention still needs to be paid to the recovery of downstream consumption and the opening of the export window.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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