Tianjin Zinc: Futures Pull Back, Transactions Improve Slightly [SMM Midday Commentary]

SMM, November 6: In the Tianjin market, mainstream transactions for #0 zinc ingot were at 25,250-25,480 yuan/mt, Zijin traded at 25,420-25,620 yuan/mt, and #1 zinc ingot traded near 25,160-25,370 yuan/mt. Zijin was quoted at a premium of 140 yuan/mt against the 2612 contract, while Huxin was quoted at 26,755 yuan/mt. #0 zinc ingot was quoted at a discount of 0-30 yuan/mt against the 2612 contract, and the Tianjin market was quoted at a discount of 45 yuan/mt against the Shanghai market. As of the midday close, the high-priced brand Zijin was at a premium of about 140 yuan/mt against the 2612 contract, while Jijin was quoted at a discount of 30 yuan/mt against the 2612 contract. In the Tianjin region, the purchasing sentiment for refined zinc was 1.891, and the shipment sentiment was 2.47. Futures pulled back, and downstream users restocked at lower prices, but mostly based on rigid demand, with no significant purchasing seen. Some enterprises still mainly consumed inventory, and traders remained less willing to sell. Quotations edged up slightly from yesterday, and overall market transactions improved compared with yesterday.