Tianjin Zinc: Futures Rise, Downstream Stays on Sidelines [SMM Midday Commentary]

SMM, October 12: In the Tianjin market, #0 zinc ingot was mainly traded at 26,140-26,340 yuan/mt, Zijin was traded at 26,320-26,420 yuan/mt, and #1 zinc ingot was traded near 26,050-26,160 yuan/mt. Zijin was quoted at a premium of around 150 yuan/mt against the 2611 contract, while Huzinc was quoted at 27,710 yuan/mt. #0 zinc ingot was quoted at a premium of 70 yuan/mt to a discount of 30 yuan/mt against the 2611 contract. The Tianjin market was quoted at a discount of around 20 yuan/mt against the Shanghai market. As of the midday close, the high-priced brand Zijin was at a premium of around 150 yuan/mt against the 2611 contract. In the Tianjin region, refined zinc procurement sentiment was 1.85, and shipment sentiment was 2.41. Futures rebounded, downstream inventory was high, and there were many price fixings last week. Today, inquiries and price fixings were few, spot cargo in Tianjin was scarce, mainly warrants, and traders maintained stable premiums on shipments. Overall market transactions were moderate.