Guangdong Zinc: Market Activity Picks Up, Spot Premiums/Discounts Rise [SMM Midday Review]

SMM April 22: In Guangdong, the mainstream transaction price of 0# zinc was 22,520-22,830 yuan/mt. The mainstream brands quoted a premium of 445 yuan/mt against the 2506 contract and a premium of 40 yuan/mt against Shanghai spot cargo. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted premiums of 445-495 yuan/mt for Kirin, Mengzi, Huize, Feilong, and Lan zinc. In the second session, Mengzi and Lan zinc quoted premiums of 455-475 yuan/mt against the net price. Overall, the futures market's center declined today, downstream purchasing sentiment improved, market trading conditions turned better, and the transaction atmosphere warmed up. Currently, the relatively tight supply of some brands, combined with the decline in the futures market, has driven spot premiums and discounts higher.