Tianjin Zinc: Weak Downstream Demand, Premiums and Discounts Continue to Decline [SMM Midday Review]

SMM February 20 News: In the Tianjin market, mainstream transactions for 0# zinc ingot were at 23,850-23,990 yuan/mt, Zijin traded at 23,880-24,000 yuan/mt, and 1# zinc ingot traded around 23,770-23,880 yuan/mt. Huludao was quoted at 27,290 yuan/mt. Ordinary 0# zinc was quoted at a discount of 40 to a premium of 10 yuan/mt against the 2503 contract, while Zijin was quoted at a discount of 10 to a premium of 20 yuan/mt against the 2503 contract. The Tianjin market was at a discount of around 20 yuan/mt compared to the Shanghai market. By the midday close, Xin Zi was quoted at a discount of 30 to a premium of 10 yuan/mt against the 03 contract, Xikang was quoted at a discount of 0-40 yuan/mt against the 03 contract, Bailing (delivered) was quoted at around 40 yuan/mt against the 03 contract, and the high-end brand Zijin was quoted at a discount of 10 to 10 yuan/mt against the 03 contract. The futures market remained rangebound today, with downstream purchasing willingness low, focusing mainly on restocking for rigid demand. Tianjin's social inventory accumulated, and traders continued to lower premiums and discounts to facilitate sales, resulting in overall poor market transactions.