Guangdong Zinc: Futures Market Uptrend Suppresses Downstream Demand, Guangdong Premium Declined Today [SMM Midday Review]

SMM February 21 News: Mainstream transactions of Guangdong 0# zinc were at 23,990-24,140 yuan/mt. Mainstream brands quoted a discount of 55 yuan/mt against the 2504 contract and a spot premium of 20 yuan/mt against Shanghai. The Shanghai-Guangdong price spread narrowed. Initially, suppliers quoted discounts of 80-50 yuan/mt for Qilin, Mengzi, Huize, Feilong, and Lan zinc. In the second session, Qilin was quoted at a discount of 60-50 yuan/mt against the online price. Overall, the futures market rose today, and downstream showed resistance to high prices. The Guangdong market saw sluggish overall consumption. Meanwhile, downstream consumption remained in a recovery phase, with end-use demand suppressed by high prices. Traders continuously lowered premiums to facilitate sales, leading to a further decline in spot premiums. Revitalization of downstream consumption still requires time.