Guangdong Zinc: Futures market center moves downward, spot premiums rise slightly [SMM Midday Review]

SMM June 10 report:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at RMB 22,090-22,235/mt. Mainstream brands were quoted at a premium of RMB 285/mt against the 2507 contract, and at a discount of RMB 10/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted premiums of RMB 275-305/mt for Qilin, Mengzi, Feilong, Anning, and Lanxin brands. In the second session, Qilin, Mengzi, Anning, and Lanxin brands were quoted at a premium of RMB 275-305/mt against the online price. Overall, influenced by the downward trend in the futures market, traders raised premiums for spot cargo in the morning session. However, some downstream buyers had already restocked yesterday. Amid weak transactions, traders slightly reduced premiums. Nevertheless, premiums for some brands increased in the second session due to recent tight spot supply. Today, the futures market maintained a fluctuating trend, with an expansion in the price spread between futures contracts and a slight increase in spot premiums/discounts.