Guangdong Zinc: Trading Remains Challenging, Spot Premiums Decline [SMM Midday Review]

SMM February 14 News: Mainstream transactions of Guangdong #0 zinc were at 23,690-24,075 yuan/mt, with mainstream brands quoting spot discounts of 70-30 yuan/mt against the 2503 contract and spot discounts of 50 yuan/mt against Shanghai spot. The Shanghai-Guangdong price spread widened. In the first trading session, suppliers quoted discounts of 70-50 yuan/mt for Qilin, Mengzi, and Lan zinc. In the second session, Qilin and Mengzi were quoted at discounts of 50-30 yuan/mt against the online price. Overall, the continuous rise in zinc prices dampened downstream restocking enthusiasm. With the adjustment in premiums and discounts today, market transactions improved slightly, with downstream buyers making purchases later in the day. However, the overall market trading atmosphere remained subdued, as downstream consumption was still in the recovery phase.