Downstream purchasing sentiment is low, and premiums in Tianjin are declining [SMM Weekly Review of Spot Zinc in Tianjin]

SMM reported on July 18: This week, spot premiums in the Tianjin region saw a slight decline, dropping by approximately 30 yuan/mt WoW. As of Friday this week, domestic common brands were quoted at a discount of 0~40 yuan/mt against the 2508 contract, while high-priced brands were quoted at a discount of 10 yuan/mt to a premium of 20 yuan/mt against the 2508 contract. The Tianjin market was quoted at a discount of around 40 yuan/mt against the Shanghai market, with the price spread between the two markets narrowing. This week, zinc prices pulled back mid-week to a level more acceptable to downstream consumers, who took the opportunity to restock at lower prices, leading to an increase in spot purchases. The inventory buildup process of zinc ingots in Tianjin slowed down. Subsequently, zinc prices rose continuously, dampening downstream purchasing enthusiasm. Some enterprises focused on restocking based on immediate needs, while traders faced difficulties in selling and continuously lowered premiums, with trading activities dominated by traders. Spot premiums are expected to stabilize next week.