Guangdong Zinc: Downstream Just-in-Time Procurement, Spot Premiums Decline [SMM Midday Review]

SMM May 12:

       The mainstream transaction price of 0# zinc in Guangdong ranged from 22,510 to 22,905 yuan/mt. Mainstream brands were quoted at a premium of 430 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 premiums of 430 to 460 yuan/mt for Qilin, Mengzi, Feilong, and Lanxin brands. In the second instance, Qilin, Mengzi, and Lanxin brands were quoted at a premium of 430 to 450 yuan/mt against the online price. Overall, influenced by the seasonal off-season in consumption, downstream enterprises in Guangdong primarily engaged in just-in-time procurement, while traders continuously lowered premiums to facilitate sales. Amidst the sluggish market transactions, spot premiums/discounts in Guangdong continued to decline today.