Guangdong Zinc: Futures Market Maintains Fluctuating Trend, Market Transactions Turn Sluggish [SMM Midday Review]

SMM reported on February 27: The mainstream transaction price of 0# zinc in Guangdong was 23,450-23,565 yuan/mt. Mainstream brands quoted a discount of 25 yuan/mt against the 2504 contract and were on par with Shanghai spot. The Shanghai-Guangdong price spread narrowed. In the first trading session, suppliers quoted discounts of 25-5 yuan/mt for Qilin, Mengzi, Huize, Feilong, and Lan zinc. In the second trading session, Qilin and Lan zinc were quoted at a discount of 5 yuan/mt against the online price. Overall, the recent decline in zinc prices improved spot transactions in Guangdong, and downstream buyers restocked at lower prices. Today, market transactions among traders were slightly divided, with some traders showing sentiment to stand firm on quotes, leading to higher spot premiums. As downstream consumption gradually improves, Guangdong premiums and discounts are expected to gradually adjust.