Guangdong Zinc: Zinc Price Center Declines, Market Transactions Improve Slightly [SMM Midday Review]

SMM, July 9: Guangdong 0# zinc traded at 24,355-24,565 yuan/mt, with mainstream brands offered discounts of 95-85 yuan/mt against the 2608 contract and a discount of 25 yuan/mt against Shanghai spot. The Shanghai-Guangdong price spread widened. Today, suppliers offered discounts of 95-85 yuan/mt for Qilin, Mengzi, Danxia, and Anning brands. The purchasing sentiment for refined zinc in Guangdong was 2 and the sales sentiment 2.4. In the morning session, downstream wait-and-see sentiment was strong, but willingness to purchase picked up after prices were quoted. Transactions improved slightly from the previous few days. Overall, however, end-use consumption was weak, factory inventories were ample, and many enterprises opted to stay on the sidelines and postpone stockpiling.