Guangdong Zinc: Market Transactions Improve, Spot Premiums Rise [[SMM Midday Review]]

SMM May 6 report:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at RMB 22,935-23,065/mt. Mainstream brands were quoted at a premium of RMB 500/mt against the 2506 contract and at a premium of RMB 50/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread widened. In the first period, suppliers quoted Qilin, Mengzi, and Lanxin zinc at a premium of RMB 540-580/mt against the online price. In the second period, Qilin, Mengzi, and Lanxin zinc were quoted at a premium of RMB 540-560/mt against the online price. Overall, there was a small amount of zinc arriving in Guangdong during the holiday, but the current overall inventory remained at a relatively low level, and the quoted spot premiums and discounts were relatively high. Meanwhile, on the first working day after the holiday, the sales of traders improved compared to the previous trading day. Coupled with the widening of the price spread between futures contracts today, this drove spot premiums and discounts higher.