SMM November 21: Spot premiums in the Tianjin area continued to increase this week, up about 60 yuan/mt WoW. As of Friday, domestic standard brands were quoted at premiums of around 0–50 yuan/mt against the 2512 contract, while premium brands were quoted at premiums of around 170–180 yuan/mt against the 2512 contract. Tianjin spot prices were at a discount of about 40 yuan/mt against Shanghai spot prices. Early in the week, zinc prices pulled back to a level more acceptable to downstream consumers, leading to increased spot purchases and stockpiling. Tianjin inventory saw slight destocking, and traders held prices firm, driving premiums higher. However, Tianjin inventory remains relatively high, and consumption performance fell short of expectations, with intermittent disruptions from environmental protection measures. Premiums are expected to struggle to rise going forward.
