SMM January 16: Spot premiums in the Tianjin region continued to decline this week, down 40 yuan/mt WoW. As of Friday, domestic standard brands were quoted at a discount of 20 yuan/mt to a premium of 30 yuan/mt against the 2602 contract, while premium brands were quoted at a discount of 20 yuan/mt to a premium of 50 yuan/mt against the 2602 contract. Tianjin prices were at a discount of about 60 yuan/mt against Shanghai prices, and the Shanghai-Tianjin price spread narrowed. Zinc prices broke through the year's high this week, making it difficult for downstream users to accept. Additionally, environmental protection alerts were issued in many areas of Tianjin and Hebei, leading to production constraints. Many enterprises began holidays successively. Zinc ingot arrivals in Tianjin increased, and traders lowered premiums to facilitate sales, resulting in declining premiums. Further declines in premiums are expected.
