Tianjin Zinc: Futures Pull Back, Downstream Still Holds Bearish Sentiment [SMM Midday Commentary]

SMM, October 13: In the Tianjin market, mainstream transactions for #0 zinc ingot were at 25,710-26,030 yuan/mt, Zijin transactions were at 25,870-26,100 yuan/mt, and #1 zinc ingot transactions were around 26,050-26,160 yuan/mt. Zijin was quoted at a premium of 130-150 yuan/mt against the 2611 contract, while Huxin was quoted at 27,380 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, and the Tianjin market was quoted at a discount of around 40 yuan/mt against the Shanghai market. As of the midday close, the high-priced brand Zijin was at a premium of around 130-150 yuan/mt against the 2611 contract. In the Tianjin area, the purchasing sentiment for refined zinc was 1.81, and the selling sentiment was 2.32. Futures pulled back, but downstream buyers still held bearish expectations, and with low price-fixing levels, there was little transaction activity. Spot supply in Tianjin was limited, mainly consisting of warrants, and traders maintained stable premiums on shipments. Overall market transactions were moderate.