SMM October 25: Spot premiums in the Tianjin area edged down WoW, falling by about 15 yuan/mt. As of Friday, domestic common brands were quoted at a discount of 20-70 yuan/mt against the 2511 contract, while premium brands were quoted at a premium of about 70 yuan/mt against the 2511 contract. Tianjin market quotes were near parity with Shanghai. Zinc prices continued to rise this week, prompting downstream buyers to purchase cautiously due to high prices. October consumption fell short of expectations, downstream zinc ingot inventory remained high, leading to a focus on digesting inventories. Downstream players maintained a bearish outlook, and traders faced slow sales at high zinc prices, continuously lowering premiums and discounts to facilitate transactions, resulting in declining premiums. Further slight decreases in premiums are expected.
