Tianjin Zinc: Freight Costs Rise, Premiums Increase [SMM Midday Commentary]

SMM, September 23: In the Tianjin market, #0 zinc ingot was mainly traded at 26,400-26,690 yuan/mt, Zijin was traded at 26,620-26,830 yuan/mt, #1 zinc ingot was traded near 26,380-26,600 yuan/mt, Zijin was quoted at a premium of 120 yuan/mt against the 2610 contract, Huzinc was quoted at 28,115 yuan/mt, #0 zinc ingot was quoted at a discount of 20-100 yuan/mt against the 2610 contract, and the Tianjin market was quoted at a discount of 50 yuan/mt against the Shanghai market. As of the midday close, the high-priced brand Zijin was at a premium of about 120 yuan/mt against the 2610 contract, and Huoshaoyun was quoted at a discount of about 100 yuan/mt against the 2610 contract. Refined zinc purchasing sentiment in the Tianjin region was 1.8, and selling sentiment was 2.31. Futures consolidated at highs, downstream users mostly stayed on the sidelines with few inquiries, freight rates rose ahead of the holiday, traders raised premiums on shipments, and overall market trading sentiment was weak.