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

SMM June 20: In the Tianjin market, mainstream transactions of #0 zinc ingot were concluded at RMB 21,920-22,130/mt, with Zijin transactions at RMB 22,010-22,140/mt. #1 zinc ingot transactions were concluded around RMB 21,740-21,870/mt, while Huludao was quoted at RMB 25,390/mt. The premium for ordinary #0 zinc against the 2507 contract was reported around RMB 60-150/mt, and the premium for Zijin against the 2507 contract was reported at a premium of around RMB 150-160/mt. Tianjin was quoted at a discount of around RMB 10/mt compared to Shanghai. By the close of the morning session, Xinzi was quoted at RMB 150/mt against the 07 contract, and Chihong was quoted at around RMB 60-120/mt against the 2507 contract. The premium for high-end brand Zijin against the 07 contract was reported around RMB 150-160/mt. The futures market continued to fluctuate, with rain in the north affecting construction, resulting in weak downstream consumption. Just-in-time procurement was the main focus, and traders continued to lower premiums without making sales, leading to weak overall market transactions.