SMM Review and Forecast of Spot Zinc Market in Tianjin

Spot premiums in Tianjin fell slightly last week. As of last Friday, the premiums stood at 80-110 yuan/mt for regular brands over SHFE 2307 contract, 110-120 yuan/mt for high-priced Zijin zinc. Discounts of zinc prices in Tianjin narrowed to 70 yuan/mt against Shanghai prices. At the beginning of the week, lower zinc prices and downstream restocking boosted trades, keeping spot premiums firm.

Adequate inventories at downstream producers weakened trades, lowering spot premiums.  At the week’s end, buying on the dip stemmed declines in spot quotes. Spot quotes will remain weak this week.