Tianjin Zinc: Zinc Prices Did Not Pull Back to Levels More Acceptable to Downstream Buyers [SMM Midday Commentary]

SMM News on August 18: In the Tianjin market, mainstream transactions of #0 zinc ingot were concluded at 25,470-25,710 yuan/mt, with Zijin traded at 25,590-25,790 yuan/mt. #1 zinc ingot was traded around 25,450-25,630 yuan/mt. Zijin was quoted at a premium of 20-50 yuan/mt against the 2609 contract, while Huxin was quoted at 26,830 yuan/mt. #0 zinc ingot was quoted at a discount of 30-100 yuan/mt against the 2609 contract, and Tianjin was quoted at a discount of around 50 yuan/mt versus Shanghai. As of the midday close, the high-priced brand Zijin was at a premium of about 20-50 yuan/mt against the 2609 contract, while Xinzi was quoted at a discount of 70 yuan/mt against the 2609 contract. Refined zinc procurement sentiment in Tianjin stood at 1.78, and shipments sentiment at 2.54. Zinc prices pulled back slightly but remained at levels relatively acceptable to downstream buyers. Coupled with still-weak actual consumption, downstream players mainly stayed on the sidelines. Traders’ selling premiums held steady, and overall market transactions were average today.