SMM News: Guangdong Zinc Premiums Decline Amid Weak Demand and Contract Rollover

Published: Jun 13, 2025 17:08

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[SMM News] This week, premiums and discounts in Guangdong continued to decline, falling by 110 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in the Guangdong market were at premiums of 265~300 yuan/mt against the market. The Shanghai-Guangdong price spread widened. At the beginning of the week, there was a large amount of spot cargo circulating in the Guangdong market, but under the relatively weak downstream demand, spot premiums fell. Subsequently, the futures market rapidly declined, breaking below 22,000 yuan/mt. Downstream enterprises restocked at lower prices. Although traders raised their premium quotations, downstream purchase willingness remained low amid high premiums, and spot premiums showed a downward trend. Next week, Guangdong will undergo contract rollover for delivery, with the contract changing from the 2507 contract to the 2508 contract. Currently, downstream consumption has entered the seasonal off-season. Meanwhile, under the expectation of a backwardation structure and the continuous release of production from some smelters, Guangdong premiums are expected to pull back after rising.

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