Guangdong Zinc: Market transactions are weak, spot premiums continue to decline [[SMM Midday Review]]

SMM May 9 report:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at 22,705-22,885 yuan/mt. Mainstream brands were quoted at a premium of 480 yuan/mt against the 2506 contract and were on par with spot cargo in Shanghai. The Shanghai-Guangdong price spread remained stable. In the first instance, suppliers quoted Qilin, Mengzi, Danxia, and Lanxin brands at a premium of 470-520 yuan/mt. In the second instance, Qilin, Mengzi, and Lanxin brands were quoted at a premium of 450-470 yuan/mt against the online price. Overall, zinc prices maintained a fluctuating trend today. However, downstream consumption in Guangdong remains sluggish, with enterprises mostly restocking based on immediate needs, resulting in sluggish market trading. The price spread between futures contracts remained unchanged from yesterday, but traders continuously lowered premiums to facilitate sales. As a result, spot premiums for all brands declined, driving the spot premium in Guangdong down to 480 yuan/mt.