GuangDong Zinc: Weak Spot Trading Drives Down Premiums Amid High Futures Market Volatility

【GuangDong Zinc:Weak Zinc Spot Trading Pulls Premiums Lower】

SMM, March 27:

The mainstream transaction price of 0# zinc in Guangdong ranged from 24,055 to 24,165 yuan/mt. The mainstream brands were quoted at a discount of 30 yuan/mt against the 2505 contract and a discount of 30 yuan/mt against Shanghai spot cargo. The Shanghai-Guangdong price spread widened. In the first session, suppliers offered discounts of 45-20 yuan/mt for Qilin, Mengzi, Huize, and Lanzinc. In the second session, Qilin and Mengzi were quoted at a discount of 30 yuan/mt against the online price. Overall, affected by the high fluctuations in the futures market, downstream purchase willingness was low, mainly focusing on consuming previous inventory. Market transactions were relatively light, with slightly increased trading among traders, but overall spot transactions still fluctuated downward. Meanwhile, some traders still maintained sentiment to stand firm on quotes, but under high futures prices and significant premiums/discounts, downstream and traders' purchase willingness remained low. Today, spot premiums/discounts slightly declined.