Tianjin Zinc: Zinc Prices Rose; Downstream Buyers Were Wary of High Prices and Purchased Cautiously [SMM Midday Commentary]

SMM News on August 17: In the Tianjin market, mainstream transactions of #0 zinc ingot were concluded at 25,660-25,920 yuan/mt; Zijin traded at 25,790-26,000 yuan/mt; #1 zinc ingot traded around 25,640-25,850 yuan/mt. Zijin was quoted at a premium of 30-40 yuan/mt against the 2609 contract; Huluxin was quoted at 27,120 yuan/mt; #0 zinc ingot was quoted at a discount of 40-100 yuan/mt against the 2609 contract; Tianjin was quoted at a discount of around 55 yuan/mt versus Shanghai. As of the midday close, the high-priced brand Zijin was at a premium of around 30-40 yuan/mt against the 2609 contract, while Xinzi was quoted at a discount of 40-70 yuan/mt against the 2609 contract. Today, refined zinc procurement sentiment in Tianjin stood at 1.74, and shipments sentiment was 2.51. Zinc prices continued to rise to levels that downstream buyers were relatively unwilling to accept; coupled with the lack of much improvement in actual consumption, downstream players mainly stayed on the sidelines. Traders’ selling premiums remained stable, and overall market transactions were average today.