Tianjin Zinc: Futures Market Rebound, Fewer Quotes from Traders [SMM Midday Review]

SMM, January 20: In the Tianjin market, mainstream transactions of 0# zinc ingots were concluded at 24,170-24,470 yuan/mt, Zijin transactions at 24,430-24,780 yuan/mt, and 1# zinc ingots at around 23,960-24,220 yuan/mt. Huludao was quoted at 27,640 yuan/mt. The premium for ordinary 0# zinc against the 2502 contract was around 140-420 yuan/mt, while Zijin was quoted at a premium of 350-450 yuan/mt against the 2502 contract. The Tianjin market showed a discount of 40 yuan/mt compared to the Shanghai market. As of the midday close, the New Zijin premium against the 02 contract was 300-420 yuan/mt, while Chihong 0# zinc had no quotes against the 02 contract, and neither did Xikang delivered zinc or Bailing zinc. High-end brand Zijin was quoted at a premium of 350-450 yuan/mt against the 02 contract. The Tianjin spot-futures price spread was 145 yuan/mt. The futures market rebounded today, but most downstream enterprises were on holiday, leading to weak demand. Many traders adopted a wait-and-see approach, with fewer quotes. Smelters continued to lower premiums for shipments, and overall transactions were sluggish.