Downstream Gradually Goes on Holiday, Premiums in Tianjin Decline [SMM Tianjin Spot Weekly Review]

SMM January 17 News: This week, spot premiums in the Tianjin region continued to decline, down 110 yuan/mt WoW based on the weekly average price. As of this Friday, domestic ordinary brands had a premium of 280–370 yuan/mt against the 2502 contract, while high-end brands had a premium of 420–500 yuan/mt against the 2502 contract. The Tianjin market had a discount of around 60 yuan/mt against the Shanghai market. This week, zinc prices fell to a four-month low, but downstream sectors had gradually entered the Chinese New Year break. Although downstream buyers actively priced at low points, demand for spot zinc remained weak, primarily focusing on locked-in prices, with zinc ingots available for delivery after the holiday. Even as year-end transportation vehicles gradually decreased, arrivals in Tianjin were limited. Traders, eager to clear inventory before the year-end, continuously lowered premiums. It is expected that by the end of next week, around the Little New Year, most downstream sectors will have completed their holiday shutdowns, and premiums will continue to decline next week.

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