Guangdong Zinc: Strong sentiment of refusing to budge on prices in the morning market, with spot premiums continuing to rise [SMM Midday Review]

SMM May 28 report:

       In Guangdong, mainstream transactions for 0# zinc were concluded at 22,790-22,965 yuan/mt. Mainstream brands were quoted at a premium of 445 yuan/mt against the 2507 contract and at a premium of 30 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread narrowed. In the first trading session, suppliers quoted Qilin, Mengzi, Feilong, and Lanxin brands at a premium of 455-515 yuan/mt. In the second trading session, Qilin was quoted at a premium of 475-485 yuan/mt against the online price. Overall, due to the impact of extended maintenance at some smelters, traders had strong sentiment to refuse to budge on prices. However, some brands of spot cargo arrived yesterday, and some traders received Qilin long-term contract cargo today, leading to an increase in market supply. Additionally, the Shanghai-Guangdong price spread widened today, dampening downstream buying sentiment. In the second trading session, traders faced difficulties in selling, and spot premiums declined somewhat.