Guangdong Zinc: End-User Enterprises Continue Operations, Spot Premiums Slightly Rise [SMM Midday Review]

SMM March 3 News: Mainstream transactions of Guangdong 0# zinc were at 23,540-23,815 yuan/mt. Mainstream brands quoted a discount of 10 yuan/mt against the 2504 contract and a premium of 10 yuan/mt against Shanghai spot. The Shanghai-Guangdong price spread narrowed. Initially, suppliers quoted discounts of 10 yuan/mt to premiums of 10 yuan/mt for brands such as Qilin, Mengzi, Huize, Feilong, and Lan Zinc. In the second session, Huize and Lan Zinc were quoted at a discount of 10 yuan/mt against the online price. Overall, social inventory in Guangdong decreased, while the futures market saw a slight uptick. Some downstream buyers showed resistance to high prices, but with end-user enterprises resuming production recently, there was stocking demand, driving spot premiums and discounts slightly higher. It is expected that as downstream consumption improves, spot premiums and discounts will continue to rise.