Guangdong Zinc: Few Downstream Operating Enterprises, Sluggish Market Transactions [SMM Midday Review]

Published: Feb 5, 2025 11:57

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[Guangdong Zinc: Fewer Operating Enterprises in Downstream, Sluggish Market Transactions] SMM February 5 News: The mainstream transaction price of Guangdong 0# zinc was around 23,180-23,760 yuan/mt, with mainstream brands quoting a premium of 10 yuan/mt against the 2503 contract and a spot discount of 50 yuan/mt against Shanghai, while the Shanghai-Guangdong price spread widened...

SMM, February 5: Mainstream transactions of Guangdong 0# zinc were around 23,180-23,760 yuan/mt. Mainstream brands quoted a premium of about 10 yuan/mt against the 2503 contract and a spot discount of 50 yuan/mt against Shanghai, with the Shanghai-Guangdong price spread widening. In the first session, suppliers quoted premiums of 0-50 yuan/mt for Qilin, Mengzi, and Lan zinc. In the second session, Mengzi quoted a premium of 10 yuan/mt against the online price. Overall, downstream enterprises are currently operating at low levels, with most actual production expected to resume around the Lantern Festival. Procurement demand remained weak. In the early session, the market quoted higher premiums due to concerns over Guangdong's inventory buildup falling short of expectations. Subsequently, premiums declined due to sluggish transactions. Market transactions were sluggish today, the price spread between futures contracts slightly expanded, and premiums slightly increased.

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