Guangdong Zinc: Spot Transactions Sluggish, Premiums Drop Sharply [SMM Midday Review]

SMM reported on January 17: The mainstream transaction price of Guangdong 0# zinc was 23,725-24,160 yuan/mt. Mainstream brands quoted spot premiums of 50-80 yuan/mt against the 2503 contract and spot discounts of 340 yuan/mt against Shanghai spot, with the Shanghai-Guangdong price spread widening. Initially, suppliers quoted premiums of 50-80 yuan/mt for Qilin, Mengzi, and Lan zinc. The futures market center moved upward today, but market transactions were sluggish. In the second session, low-priced shipments from earlier traders concluded, and Qilin and Mengzi were quoted at premiums of 80 yuan/mt. Overall, traders reported that most downstream clients had already gone on holiday, leading to sluggish downstream purchasing demand. The narrowing of the price spread between futures contracts, combined with poor spot sales, caused spot premiums to decline significantly.