Zinc prices have climbed to a level that is difficult for downstream industries to accept, with premiums in Tianjin declining [SMM Weekly Review of Spot Zinc in Tianjin]

SMM reported on July 25: This week, spot premiums in the Tianjin region continued to decline, dropping by approximately 40 yuan/mt WoW. As of Friday this week, domestic common brands were quoted at a discount of 0~80 yuan/mt against the 2508 contract, while high-priced brands were quoted at a discount of 20 yuan/mt against the 2508 contract. The Tianjin market was quoted at a discount of around 50 yuan/mt against the Shanghai market. This week, zinc prices surged sharply to a level that was difficult for downstream buyers to accept, resulting in low purchasing enthusiasm. Downstream buyers mainly consumed inventory, with only a small amount of necessary purchases made at later pricing. Tianjin zinc ingot inventory continued to build up, and traders faced difficulties in selling, leading to continuous reductions in premiums. Extreme quotes emerged in the market, with disorganized pricing, and traders dominated the trading activities. It is expected that premiums may maintain a fluctuating trend next week.