SHANGHAI, May 25 (SMM) - Zinc spot premiums in Guangdong contracted rapidly due to increased supplies, SMM reported.
Market supplies increased after Hechi Nanfang Nonferrous Metals Co. finished maintenance cycle.
Spot premiums on #0 zinc in Guangdong contracted from 300-350 yuan per tonne last week to around 200 yuan per tonne against front month zinc contract on the Shanghai Futures Exchange (SHFE), SMM data showed.
Spot premiums fell from 270 yuan per tonne in the morning trading to around 150 yuan per tonne later the day on May 25.
When combined with cash tightness at the end of the month, spot premiums on #0 zinc in the region are expected to fall further today, SMM said.
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