Tianjin Zinc: Downstream Still Bearish on Premiums, Sluggish Market Transactions [SMM Midday Review]

SMM May 12 news: In the Tianjin market, mainstream transactions for #0 zinc ingot were concluded at 22,440-22,910 yuan/mt, with Zijin transactions at 22,600-22,990 yuan/mt. Transactions for #1 zinc ingot were around 21,960-22,330 yuan/mt, while Huludao was quoted at 26,080 yuan/mt. The premium for ordinary #0 zinc against the 2506 contract was around 360-470 yuan/mt, with Zijin's premium against the 2506 contract at 520-550 yuan/mt. Tianjin was quoted at a discount of around 30 yuan/mt against Shanghai. By the close of the morning session, Xikuang's premium against the 06 contract was 360-370 yuan/mt for delivery, Chihong's premium against the 06 contract was around 400 yuan/mt, Hongye's premium against the 06 contract was 470 yuan/mt, Bailing's premium against the 06 contract was 450 yuan/mt, and the premium for the high-end brand Zijin against the 06 contract was around 520-550 yuan/mt. The futures market fluctuated, with downstream buyers holding a bearish outlook on premiums, primarily restocking based on immediate needs. Traders continuously lowered premiums to facilitate sales, leading to a decline in premiums across all brands. Overall market transactions were sluggish.