Guangdong Zinc: Downstream Consumption Recovery Still Requires Time, Spot Transactions in Guangdong Market Remain Sluggish [SMM Midday Review]

SMM February 7 News: Mainstream transactions of Guangdong #0 zinc were concluded at 23,620-23,970 yuan/mt. Mainstream brands quoted a premium of 0-50 yuan/mt against the 2503 contract and a discount of 50 yuan/mt against Shanghai spot. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted a premium of 0-50 yuan/mt for Qilin, Mengzi, Feilong, and Lan zinc. In the second session, Qilin and Mengzi quoted a premium of 20 yuan/mt against the online price. Overall, premiums showed a downward trend today. Early in the morning, traders quoted higher premiums as the futures market rose slightly, but due to sluggish sales, traders lowered premiums, and market transactions were moderate. Currently, some enterprises are preparing to resume production in the near term, but a full recovery in downstream consumption still requires time.