Guangdong Zinc: Market Sentiment Turns Wait-and-See, Spot Premiums/Discounts Rise [SMM Midday Review]

SMM May 27 News:

       The mainstream transactions of 0# zinc in Guangdong were concluded at 22,690-23,145 yuan/mt. Mainstream brands were quoted at a premium of 405 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 period, suppliers quoted premiums of 435-455 yuan/mt for Qilin, Feilong, and Lanxin brands. In the second period, the premiums for Qilin, Danxia, and Feilong brands were quoted at 435-530 yuan/mt. Affected by the news of extended maintenance at smelters in South China, the spot market was tight today, with some traders experiencing a shortage of spot cargo. Meanwhile, some traders had a strong wait-and-see sentiment, with low willingness to sell. The tight spot supply drove premiums and discounts higher.