Tianjin Zinc: Downstream consumption weakens, market transactions sluggish [SMM Midday Review]

SMM, May 9: In the Tianjin market, mainstream transactions for #0 zinc ingot were concluded at RMB 22,660-22,840/mt, with Zijin transactions at RMB 22,790-22,940/mt. Transactions for #1 zinc ingot were around RMB 22,140-22,250/mt, while Huludao was quoted at RMB 26,130/mt. Regular #0 zinc was quoted at a premium of RMB 400-580/mt against the 2506 contract, with Zijin quoted at a premium of RMB 530-580/mt against the 2506 contract. Tianjin was quoted at a discount of around RMB 20/mt against Shanghai. By the close of the morning session, Xinzi was quoted at a premium of RMB 470-480/mt against the 06 contract, Xikuang was quoted at a premium of RMB 450/mt delivered against the 06 contract, Chihong was quoted at around RMB 450/mt against the 06 contract, and high-end brand Zijin was quoted at a premium of around RMB 530-580/mt against the 06 contract. The futures market continued to fluctuate, with downstream consumption weakening somewhat. Restocking was mainly driven by immediate needs, and downstream players remained bearish on premiums. Major producers primarily relied on long-term contracts, and the futures market had not yet reached the downstream's psychological price level. Traders continuously lowered premiums to facilitate sales, resulting in sluggish market transactions.