Guangdong Zinc: Weak Downstream Procurement Enthusiasm, Spot Premiums Decline [SMM Midday Review]

SMM May 19:

       In Guangdong, the mainstream transactions of 0# zinc were concluded at 22,640-22,795 yuan/mt. Mainstream brands were quoted at premiums of 280 yuan/mt against the 2507 contract, and at discounts of 140 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread widened. In the first session, suppliers quoted premiums of 260-290 yuan/mt for Qilin, Feilong, and Lanxin brands. In the second session, Qilin and Huize were quoted at premiums of 280-290 yuan/mt against the online price. Overall, the spot trading atmosphere in Guangdong remained sluggish. Today, the futures market maintained a fluctuating trend, with many traders still offering goods for sale. However, downstream procurement enthusiasm was insufficient, leading to a decline in spot premiums.