Zinc Prices Break Through Resistance and Rise, Downstream Users Cautious About High Prices and Purchase Prudently [SMM Tianjin Zinc Spot Weekly Review]

SMM January 9: Spot premiums in the Tianjin region edged down WoW, falling 5 yuan/mt. As of Friday, domestic common brands were quoted at a premium of 20-80 yuan/mt against the 2602 contract, while premium brands were quoted at a premium of 50-110 yuan/mt against the 2602 contract. Tianjin spot was at a discount of about 70 yuan/mt against Shanghai spot, narrowing the Shanghai-Tianjin price spread. Zinc prices fluctuated at highs throughout the week, causing downstream buyers to be cautious due to high prices and reducing purchases amid weakening demand. Many enterprises began holidays successively, zinc ingot arrivals in Tianjin increased, and traders slightly lowered premiums to facilitate sales, leading to a decline in premiums. Further decreases in premiums are expected.