Guangdong Zinc: Futures Market Slightly Up, Overall Downstream Demand Remains Average [SMM Midday Review]

SMM, February 19: Mainstream transactions of Guangdong #0 zinc were concluded at 23,820-24,010 yuan/mt. Mainstream brands quoted a discount of 50-10 yuan/mt against the 2504 contract and a spot premium of 10 yuan/mt against Shanghai. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted a discount of 50-10 yuan/mt for Qilin, Mengzi, Huize, and Feilong. In the second session, Mengzi and Lan Zinc quoted a discount of 50-25 yuan/mt against the online price. Overall, more traders were active in shipments today, but zinc prices rose compared to yesterday, leading to downstream resistance to high prices. Just-in-time procurement dominated, while downstream consumption has not yet fully recovered. As a result, transactions showed little change compared to yesterday. It is expected that as downstream consumption gradually improves, market premiums will rise.