Guangdong Zinc: Futures Market Declines Combined with Lower Cargo Volume, Spot Premiums Rise Today [SMM Midday Review]

SMM April 28 report:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at RMB 22,880-23,115/mt. Mainstream brands were quoted at a premium of RMB 480/mt against the 2506 contract and at a premium of RMB 30/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted Qilin, Mengzi, and Lanxin zinc at a premium of RMB 500-570/mt. In the second session, Qilin, Mengzi, and Lanxin zinc were quoted at a premium of RMB 510-550/mt against the online price. Overall, the futures market declined today, driving an improvement in market trading sentiment. Currently, there is a shortage of spot cargo in the market, and traders are quoting higher premiums and discounts. However, with the Labour Day holiday approaching, traders and some downstream enterprises are conducting a small amount of pre-holiday inventory stockpiling. Multiple factors have driven an increase in market premiums and discounts.