Tianjin Zinc: Zinc Prices Remain High, Downstream Restocking Only for Essential Needs [SMM Midday Commentary]

SMM, September 4: In the Tianjin market, mainstream transactions for #0 zinc ingot were at 26,590-26,840 yuan/mt, Zijin traded at 26,780-26,910 yuan/mt, and #1 zinc ingot traded near 26,590-26,730 yuan/mt. Zijin was quoted at a premium of 0-120 yuan/mt against the 2610 contract, while Huzinc was quoted at 28,035 yuan/mt. #0 zinc ingot was quoted at a discount of 0-120 yuan/mt against the 2610 contract, and the Tianjin market was quoted at a discount of 50 yuan/mt against the Shanghai market. As of the midday close, the high-priced brand Zijin was at a premium of around 70 yuan/mt against the 2610 contract, and new Zijin was quoted at parity against the 2610 contract. Today, the procurement sentiment for refined zinc in the Tianjin region was 1.62, and the shipment sentiment was 2.41. Futures continued to consolidate at highs, with a small amount of just-in-time procurement from downstream buyers, while most downstream buyers were still waiting for suitable price levels. Traders' shipment premiums edged up slightly, and overall market transactions were relatively weak today.