Premiums continue to decline, with average market transactions [SMM Tianjin Spot Zinc Weekly Review]
[Premiums Continue to Decline, Market Transactions Remain Average]: This week, spot premiums in Tianjin continued to decline, falling by approximately 85 yuan/mt WoW. As of Friday this week, domestic common brands were quoted at premiums of 200-230 yuan/mt against the 2506 contract, while high-end brands were quoted at premiums of 250-280 yuan/mt against the 2506 contract. Tianjin was quoted at a discount of approximately 10 yuan/mt against Shanghai.
[SHFE/LME Price Ratio Rises Near 8.5, Zinc Ingot Import Window Closes]: This week, the SHFE/LME price ratio rose near 8.5, and the zinc ingot import window closed. From an overseas perspective, Moody's downgraded the US credit rating from Aaa to Aa, and market sentiment about the economy continued to rise. Later, Bostic reiterated his preference for only one interest rate cut this year, and LME zinc declined amidst sentiment and low expectations for interest rate cuts.
[Production of some early orders commenced, operating rates of galvanising producers slightly increased]: This week, the operating rate of galvanising producers reached 62.03%, up 1.08 percentage points WoW. In terms of raw material inventory, zinc prices fluctuated and consolidated this week, with some downstream enterprises slightly restocking, leading to a slight increase in zinc ingot inventory.