Guangdong Zinc: Sluggish Market Trading as Traders Lower Premiums to Facilitate Sales [SMM Midday Review]

SMM January 21: The mainstream transaction price of Guangdong 0# zinc was 24,245-24,410 yuan/mt. Mainstream brands quoted a premium of 65-95 yuan/mt against the 2503 contract and a discount of 40 yuan/mt against Shanghai spot. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted a premium of 75-95 yuan/mt for Qilin and Mengzi brands. In the second session, Qilin, Mengzi, and Lan zinc were quoted at a premium of 65-85 yuan/mt against the online price. Overall, more downstream enterprises went on holiday, market transactions were sluggish, and Guangdong inventory increased. Early in the morning, traders offered higher premiums, but downstream purchase willingness was low, leading to a reduction in premiums. The price spread between futures contracts widened today, but due to poor sales, market premiums declined compared to yesterday.