Tianjin Zinc: Downstream Demand Pulls Back Significantly, Overall Transactions Fluctuate Downward [SMM Midday Review]

SMM January 14 News: In the Tianjin market, mainstream transactions of 0# zinc ingot were at 24,520-24,810 yuan/mt, Zijin traded at 24,580-24,810 yuan/mt, and 1# zinc ingot traded around 24,000-24,200 yuan/mt. Zijin quoted a premium of 460-500 yuan/mt against the 2502 contract, with Tianjin market at a discount of 80 yuan/mt compared to the Shanghai market. As of the midday close, New Zijin quoted a premium of 400-460 yuan/mt against the 02 contract, Chihong quoted 400-460 yuan/mt against the 02 contract, Xikang had no quotes for the 02 contract, Bailing quoted a premium of 480 yuan/mt against the 02 contract, and the high-end brand Zijin quoted a premium of 460-500 yuan/mt against the 02 contract. The Tianjin spot-futures price spread was 405 yuan/mt. The futures market pulled back slightly, downstream demand declined significantly as many had already gone on holiday, and previous restocking was substantial, leading to low purchasing enthusiasm. As delivery approached, traders were eager to sell and actively lowered premiums to offload goods, resulting in overall transactions being weaker than yesterday.