Tight capacity near the holiday drives premiums higher [SMM Tianjin zinc spot weekly review]

SMM, September 30: Spot premiums in the Tianjin region rose notably this week, up 50 yuan/mt WoW. As of Thursday this week, mainstream domestic brands were quoted at premiums of 50 yuan/mt to discounts of 70 yuan/mt against the 2611 contract, while high-end brands were quoted at premiums of around 200 yuan/mt against the 2610 contract. Tianjin was quoted at discounts of around 25 yuan/mt against Shanghai, with the Shanghai-Tianjin price spread narrowing. Zinc prices consolidated this week, but with the holiday approaching, many downstream buyers locked in prices to stockpile and gradually picked up goods. Some traders were on holiday toward month-end and sold less, while fewer transport vehicles, higher oil prices, and notably higher freight costs prompted traders to raise their quotes accordingly. Spot premiums rose notably, and premiums are expected to remain largely stable after the holiday.