Zinc in Tianjin: Downstream Buyers Reluctant to Purchase, Spot Discounts Weakened

SHANGHAI, Feb 23 (SMM) - In Tianjin, #0 zinc ingot was mostly traded at 23,400-23,490 yuan/mt, Zijin zinc 23,440-23,530 yuan/mt, and Huludao zinc 28,200 yuan/mt. At the same time, #0 zinc was quoted with discounts of 60-100 yuan/mt over SHFE 2303 zinc contract and 60 yuan/mt against Shanghai.

As of noon of February 9, spot discounts of regular brand Chihong stood at 70-100 yuan/mt over SHFE 2303 contract, Hongye 60-70 yuan/mt, Bailing 70-80 yuan/mt, and high-priced brand Zijin 20-60 yuan/mt. KZ (free from ex-works) was out of stock.

Zinc prices were volatile today, but were not low enough to stimulate downstream buyers when they had enough inventory. Scarce inquiries promoted traders to sell off, thus the discounts weakened. However, the overall transactions were still slack.

1# zinc ingot was traded between 23,310-23,350 yuan/mt.