Guangdong Zinc: Market sentiment is cautious, with spot cargo transactions weakening somewhat [SMM Midday Review]

SMM May 7 news:

       In Guangdong, the mainstream transactions of 0# zinc were concluded at 22,795-23,135 yuan/mt. Mainstream brands were quoted at a premium of 515 yuan/mt against the 2506 contract, and at a 0 yuan/mt premium against spot cargo in Shanghai. The Shanghai-Guangdong price spread narrowed. In the first instance, suppliers quoted Qilin, Mengzi, and Lanxin zinc at a premium of 555-605 yuan/mt against the online price. In the second instance, Qilin, Mengzi, and Lanxin zinc were quoted at a premium of 560-585 yuan/mt against the online price. Overall, in the recent market, premiums and discounts, as well as the price spread between futures contracts, have gradually increased. Downstream players built up inventories yesterday, and the market sentiment was characterized by a wait-and-see approach, with purchasing sentiment weakening somewhat today. Traders experienced poor sales. However, the widening price spread between futures contracts has led to a slight increase in spot premiums and discounts.