Downstream Enters Holiday Pace, Trading Sluggish [SMM Tianjin Zinc Spot Weekly Review]

SMM January 23: Spot premiums in the Tianjin area continued to decline this week, down 5 yuan/mt WoW. As of Friday, domestic common brands were quoted at discounts of around 20 yuan/mt to premiums of around 30 yuan/mt against the 2602 contract, while premium brands were quoted at premiums of around 40-50 yuan/mt against the 2602 contract. Tianjin prices were at a discount of around 60 yuan/mt against Shanghai prices. Zinc prices continued to fluctuate at highs this week. Although they dropped back slightly mid-week, downstream buyers found it difficult to accept, and demand weakened as downstream users in the north began holiday preparations. Environmental protection alerts were issued again. Although zinc ingot arrivals in Tianjin decreased compared to before, traders' offers were chaotic. Overall, premiums pulled back slightly, and further declines are expected.