Tianjin Zinc: Downstream Procurement Enthusiasm Remains Low, Market Transactions Are Average [SMM Midday Review]

SMM, May 7: In the Tianjin market, mainstream transactions for #0 zinc ingot were concluded at RMB 22,690-23,030/mt, with Zijin transactions at RMB 22,820-23,130/mt. Transactions for #1 zinc ingot were around RMB 22,120-22,420/mt, while Huludao was quoted at RMB 26,130/mt. The premium for ordinary #0 zinc against the 2506 contract was around RMB 450-500/mt, with Zijin quoting a premium of RMB 580-600/mt against the 2506 contract. The Tianjin market was quoted at a discount of around RMB 10/mt against the Shanghai market, with the price spread between the two markets narrowing. By the close of the morning session, Xinzhi was quoted at a premium of around RMB 500/mt against the 06 contract, while Xikuang had no immediate quote for its premium against the 06 contract. Chihong was quoted at a premium of around RMB 450-500/mt against the 06 contract, with the high-end brand Zijin quoting a premium of around RMB 580-600/mt against the 06 contract. The futures market was in the doldrums, but the price spread between futures contracts gradually widened. Some downstream players adopted a wait-and-see attitude, anticipating a decline in premiums. They mainly focused on restocking based on immediate needs or awaiting the arrival of new long-term contracts. Coupled with weak orders, their purchasing enthusiasm was low. Traders' selling quotes remained slightly stable, with overall transactions being average.