Guangdong Zinc: Futures Market Declines, Spot Premiums Rise [[SMM Midday Review]]

SMM, April 28:

       The mainstream transaction price of 0# zinc in Guangdong was 22,880-23,115 yuan/mt. Mainstream brands were quoted at a premium of 480 yuan/mt against the 2506 contract and at a premium of 30 yuan/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 500-570 yuan/mt. In the second session, Qilin, Mengzi, and Lanxin zinc were quoted at a premium of 510-550 yuan/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 stocking. Multiple factors have driven premiums and discounts in the market to rise somewhat.