This week, contract rollover led to a decline in premiums [SMM Tianjin Zinc Spot Weekly Review]

SMM, September 4: This week, spot premiums in the Tianjin region edged down, falling by 10 yuan/mt WoW. As of this Friday, domestic mainstream brands were quoted at a discount of 0-150 yuan/mt against the 2610 contract, while high-priced brands were quoted at a premium of around 70 yuan/mt against the 2609 contract. Tianjin was quoted at a discount of around 50 yuan/mt against Shanghai, with quotes rolling over to the new contract this week. This week, zinc prices continued to consolidate at highs, and downstream players mostly remained on the sidelines, with limited inquiries and pricing, focusing on digesting inventories. Large smelters mainly relied on long-term contracts. Under the backwardation structure, premiums after the contract rollover were lowered. With the export window open, Tianjin zinc ingot inventories destocked, and premiums were slightly boosted toward the weekend. Premiums are expected to remain largely stable next week.