Guangdong Market: Zinc Prices Fell Sharply with Significant Increases in Spot Premiums

SHANGHAI, May 10 (SMM) - #0 zinc in Guangdong was traded at 25,560-25,980 yuan/mt and quoted with premiums of 30-80 yuan/mt over the SHFE 2206 zinc contract. Discounts in Guangdong market stood at 50 yuan/mt over Shanghai prices. Price spread between the two places rose 40 yuan/mt from a day ago. In the first period, in the case of a sharp drop in zinc prices, holders held firm to the prices. While holders were optimistic about the premiums, quotations declined with premiums of 20 yuan/mt for Qilin and Mengzi and 60 yuan/mt for Danxia in June by some holders and with flat spot prices for Qilin in May. In the second period, holders quoted at 50 yuan/mt for Danxia, while quotations for Qilin and Mengzi remained unchanged. The quotations moved between 30-35 yuan/mt over the June contract and the transaction prices moved around 25,615-25,980 yuan/mt with modest transactions. In general, the market made inquiries actively with modest transactions.