Tianjin Zinc: Futures Pulled Back, Premiums Slightly Rose [SMM Midday Review]

SMM February 17 News: In the Tianjin market, mainstream transactions of 0# zinc ingots were concluded at 23,560-23,880 yuan/mt, Zijin transactions at 23,590-23,890 yuan/mt, and 1# zinc ingots at around 23,450-23,750 yuan/mt. Huludao was quoted at 27,070 yuan/mt. Ordinary 0# zinc was quoted at a discount of 10-20 yuan/mt against the 2503 contract, while Zijin was quoted at a premium of 20-30 yuan/mt against the 2503 contract. The Tianjin market was at a discount of around 10 yuan/mt compared to the Shanghai market. As of the midday close, New Zijin was quoted at a premium of 0-20 yuan/mt against the 03 contract, Xikang delivered was quoted at 0-50 yuan/mt against the 03 contract, Bailing (delivered) was quoted at around 60 yuan/mt against the 03 contract, Sihuan delivered was quoted at a premium of 0-30 yuan/mt against the 03 contract, and the high-end brand Zijin was quoted at a premium of 20-30 yuan/mt against the 03 contract. The futures market pulled back slightly today, prompting some downstream buyers to restock at lower prices, though demand remained primarily on a need-only basis. However, the zinc ingot inventory in Tianjin warehouses fell short of expectations, leading to a slight rebound in self pick-up premiums for zinc ingots. Overall, the market was average.