Tianjin Zinc: Downstream Enters Holiday Mode, Demand Weakens [SMM Midday Review]

SMM, January 13: In the Tianjin market, mainstream transactions of 0# zinc ingot were concluded at 24,570-24,840 yuan/mt, Zijin at 24,630-24,880 yuan/mt, and 1# zinc ingot at around 24,030-24,250 yuan/mt, while Huludao was quoted at 28,190 yuan/mt. The premium for ordinary 0# zinc against the 2502 contract was 420-480 yuan/mt, and Zijin was quoted at a premium of 480-550 yuan/mt against the 2502 contract. The Tianjin market showed a discount of 100 yuan/mt compared to the Shanghai market. By the midday close, Xinzi was quoted at a premium of 440-520 yuan/mt against the 02 contract, Chihong at 400-510 yuan/mt, while Xikang and Bailing had no quotes. High-end brand Zijin was quoted at a premium of 480-500 yuan/mt against the 02 contract. The Tianjin spot-futures price spread stood at 420 yuan/mt. The futures market continued to rebound today, while downstream buyers were cautious due to high prices, focusing on restocking for rigid demand mainly through long-term contracts. Coupled with most enterprises gradually entering the holiday season, downstream consumption declined significantly, purchase willingness was low, and some traders were eager to sell, leading to scattered quotations. Overall, market transactions were moderate.