Spot Zinc Premiums Fell Sharply In Guangdong

Spot #0 zinc was quoted with premiums of 225-300 yuan/mt over SHFE 2307 zinc contract last week, and discounts in Guangdong stood at 60 yuan/mt to premiums of 20 yuan/mt against Shanghai prices. The price of zinc rose during the week, and downstream buyers were cautious. Spot trading was quiet.

Sellers that held back goods at low prices previously sold actively last week. As a result, spot premiums fell rapidly.

Prices of ordinary brands were still higher than those of Luhua and other brands, so the shipments of ordinary brands were still sluggish. During the week, most transactions were made among traders and under long-term contracts. It is expected that this week, the decline in spot premiums may slow down.