Tianjin Zinc: Futures Surge, Traders Dominate Trading [SMM Midday Commentary]

SMM July 7 – In the Tianjin market, #0 zinc ingot were mainly traded at 24,510-24,720 yuan/mt, with Zijin traded at 24,590-24,800 yuan/mt, and #1 zinc ingot traded around 24,500-24,690 yuan/mt. Zijin was quoted at a discount of 0-30 yuan/mt against the 2608 contract, Hu zinc was reported at 25,760 yuan/mt, and #0 zinc ingot was at a discount of 80-110 yuan/mt against the 2608 contract. The Tianjin market was at a discount of 30 yuan/mt against Shanghai. By the close of the morning session, premium brand Zijin was quoted at a discount of about 0-30 yuan/mt against the 2608 contract, while new Zijin was at a discount of 80 yuan/mt. Today's purchasing sentiment for refined zinc in Tianjin was 1.81, and sales sentiment was 2.56. Futures continued to rebound today, which made downstream users cautious of high prices and hesitant to purchase, with few inquiries. However, the export window opened, and traders were preparing for exports, driving up premiums for export brands. The actual volume of exports remains to be watched. Overall market trading was moderate today, with transactions mainly between traders.