Premiums continue to decline, traders await delivery [SMM Weekly Review of Spot Zinc in Tianjin]

SMM News on June 13: This week, spot premiums in the Tianjin region plummeted, dropping by approximately 175 yuan/mt WoW. As of Friday this week, domestic common brands were quoted at premiums of 180-280 yuan/mt against the 2507 contract, while high-priced brands were quoted at premiums of 310-330 yuan/mt against the 2507 contract. The Tianjin market was at a discount of around 10 yuan/mt against the Shanghai market, with the price spread between the two markets narrowing. At the beginning of the week, the futures market pulled back sharply below 22,000 yuan/mt, and then operated in a volatile manner. Downstream buyers restocked significantly at lower prices on Monday, but consumption remained weak. Subsequently, downstream purchasing enthusiasm was low, with purchases mainly driven by immediate needs. After restocking on Monday, social inventory in Tianjin underwent destocking. However, with the continuous narrowing of the price spread between futures contracts under the backwardation structure, the premiums quoted by traders declined. Nevertheless, sales were sluggish at the end of the week, prompting more traders to consider transferring to delivery warehouses, with premiums stabilizing. It is expected that premiums may decline after the delivery period ends next week.

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