Guangdong Zinc: Downstream Consumption Lacks Highlights, Spot Market Transactions Sluggish [SMM Midday Review]

SMM February 20 News: Guangdong 0# zinc mainstream transactions were at 23,840-23,970 yuan/mt, with mainstream brands quoting spot discounts of 50-20 yuan/mt against the 2504 contract and spot discounts of 10 yuan/mt against Shanghai spot. The Shanghai-Guangdong price spread remained stable. In the first trading session, suppliers quoted discounts of 50-40 yuan/mt for Qilin, Mengzi, Huize, and Lan zinc; in the second session, Qilin was quoted at a discount of 40 yuan/mt against the online price. Overall, zinc prices are maintaining a fluctuating trend, with some downstream players adopting a wait-and-see attitude toward future zinc price movements, focusing on just-in-time procurement to consume inventory under such circumstances. Meanwhile, end-use consumption currently shows no significant highlights. Coupled with relatively high recent premiums, enterprises' purchase willingness is relatively small, and premiums are expected to continue fluctuating downward.