SMM Zinc Ingot Inventory Decreases to 267,400 mt Across Seven Regions as of August 10

At end-July, zinc calcine TCs declined, with tight raw material supply and elevated procurement costs, combined with production cuts at some enterprises, putting market prices under pressure. Entering August, the tightness on the raw material side persists, but with weakening demand and profit constraints on enterprises, the room for further decline in TCs may be relatively limited.

According to market sources, typhoon conditions restricted pick-ups at some warehouses and terminals in East China today, while the availability of spot material and the number of active sellers remained relatively limited. Meanwhile, some zinc alloy producers in parts of Zhejiang suspended operations due to the typhoon, resulting in weaker downstream purchasing demand. Trading activity on both the supply and demand sides was affected to some extent, and overall spot trading in the East China zinc ingot market remained subdued today. SMM will continue to monitor the impact of the typhoon on subsequent material pick-ups and downstream production.

[Tianjin Zinc: Zinc Prices Remain High, Market Transactions Slack] In the Tianjin market, mainstream traded prices for #0 zinc ingot were 25,340-25,520 yuan/mt, Zijin traded at 25,470-25,630 yuan/mt, #1 zinc ingot traded around 25,340-25,480 yuan/mt, Zijin reported a premium of around 10-40 yuan/mt against the 2609 contract, Huxin was quoted at 26,805 yuan/mt, #0 zinc ingot reported a discount of around 70-120 yuan/mt against the 2609 contract, and the Tianjin market was quoted at a discount of around 85 yuan/mt against the Shanghai market.