Guangdong Zinc: Contract rollover quotes in Guangdong region today show that spot premiums have risen somewhat [SMM Midday Review]

SMM May 16:

       In Guangdong, the mainstream transaction price for 0# zinc ranged from 22,640 to 22,700 yuan/mt. Mainstream brands were quoted at a premium of 305 yuan/mt against the 2507 contract, and at a discount of 40 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread widened. In the first session, suppliers quoted Qilin, Mengzi, and Lanxin zinc at a premium of 265-275 yuan/mt. In the second session, Qilin, Mengzi, and Lanxin zinc were quoted at a premium of 255-275 yuan/mt against the online price. Overall, downstream buyers in Guangdong still focused on just-in-time procurement. Today, Guangdong conducted a contract rollover from the 2506 contract to the 2507 contract. The futures market maintained a fluctuating trend. The sales performance of enterprises was relatively average, with some traders choosing to slightly lower their premiums for sales. However, the contract rollover led to an increase in spot premiums/discounts today.