SMM December 26: Spot premiums in Tianjin rose slightly this week, up about 5 yuan/mt WoW. As of Friday, domestic standard brands were quoted at premiums of around 10-40 yuan/mt against the 2601 contract, while premium brands were quoted at premiums of around 50-100 yuan/mt against the 2601 contract. Tianjin premiums were at a discount of about 80 yuan/mt against Shanghai. Zinc prices pulled back slightly at the beginning of the week, prompting downstream users to restock moderately. However, as many had already locked in lower prices earlier, cargo pick-up increased after environmental restrictions were lifted. Traders focused on year-end settlements, leading to limited spot supply and pushing Tianjin premiums higher. A new round of environmental alerts started on Friday, and with weakening demand, premiums are expected to pull back.
