Guangdong Zinc: Futures Market Rises, Downstream Players Remain Cautious [SMM Midday Review]

SMM March 24: Mainstream transactions of 0# zinc in Guangdong were at 23,935-24,225 yuan/mt. Major brands quoted a discount of 15 yuan/mt against the 2505 contract and were on par with Shanghai spot, with the Shanghai-Guangdong price spread narrowing. In the first session, suppliers offered discounts of 35-5 yuan/mt for Qilin, Mengzi, Huize, Feilong, and Lanxin. In the second session, Qilin and Mengzi were at a discount of 15-10 yuan/mt against the online price. Overall, zinc prices continued to rise today. Although there was some inquiry from downstream buyers, they were relatively hesitant due to high prices. End-users with inventory replenishment plans were more cautious, leading to suppressed purchasing enthusiasm. The overall market transactions weakened, and the difficulty in trading spot zinc led to a decline in spot premiums and discounts.