Environmental Protection Impacts Consumption, Market Transactions Weaken [SMM Tianjin Zinc Spot Weekly Review]

SMM December 19: Spot premiums in Tianjin rose this week, up about 50 yuan/mt WoW. As of Friday, domestic common brands were quoted at premiums of 0–40 yuan/mt against the 2601 contract, while premium brands were quoted at premiums of 50–90 yuan/mt against the 2601 contract. Tianjin spot was at a discount of about 10 yuan/mt against Shanghai. Zinc prices pulled back slightly at the start of the week, prompting downstream users to restock moderately. However, environmental protection alerts were issued in Tianjin and Hebei, weakening consumption and affecting truck transport. Cargo pick-up was limited later in the week amid increased spot supply, and traders continuously lowered premiums and discounts to clear inventory, leading to a decline in Tianjin premiums. With no notice yet of the environmental measures being lifted, premiums are expected to continue falling.