Tianjin Zinc: Weakening Demand, Premium Continues to Decline [SMM Midday Review]

SMM May 19: In the Tianjin market, mainstream transactions for #0 zinc ingot were concluded at 22,580-22,790 yuan/mt, with Zijin transactions at 22,660-22,800 yuan/mt. Transactions for #1 zinc ingot were around 22,260-22,390 yuan/mt, while Huludao reported prices at 26,010 yuan/mt. The premium for ordinary #0 zinc against the 2506 contract was around 200-290 yuan/mt, and the premium for Zijin against the 2506 contract was around 280-300 yuan/mt. Tianjin reported a discount of around 20 yuan/mt compared to Shanghai. By the close of the morning session, Chihong reported a premium of around 200-270 yuan/mt against the 06 contract, Xinzi reported a premium of 260-390 yuan/mt against the 06 contract, and the premium for the high-end brand Zijin against the 06 contract was around 280-300 yuan/mt. The futures market pulled back today, but downstream procurement enthusiasm remained low, with restocking mainly driven by immediate needs or long-term contracts. Overall demand was weak, and traders continuously lowered premiums to facilitate sales, resulting in generally average market transactions.