Guangdong Zinc: Downstream Procurement Enthusiasm Pulls Back, Market Transaction Atmosphere Turns Weak [SMM Midday Review]

SMM May 22 news:

      In Guangdong, the mainstream transactions for 0# zinc were concluded at 22,600-22,745 yuan/mt. Mainstream brands were quoted at a premium of 355 yuan/mt against the 2507 contract and at a discount of 30 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread narrowed. In the first instance, suppliers quoted Qilin, Mengzi, and Lanxin brands at a premium of 385-405 yuan/mt. In the second session, Qilin was quoted at a premium of 385-395 yuan/mt against the online price. Overall, the current supply of spot cargo for some brands in the Guangdong market is relatively low, and traders have a low willingness to sell at reduced premiums. Although the futures market declined somewhat today, some downstream buyers had already made small purchases yesterday, resulting in weak stocking demand and a subdued trading atmosphere in the market.