Guangdong Zinc: Downstream Just-in-Time Procurement Dominates, Market Trading Atmosphere Remains Average [SMM Midday Review]

SMM, June 3:

       The mainstream transactions of 0# zinc in Guangdong were concluded at 22,610-23,015 yuan/mt. Mainstream brands were quoted at premiums of 460 yuan/mt against the 2507 contract and discounts of 130 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread widened. In the first session, suppliers quoted premiums of 470-510 yuan/mt against the online price for Qilin, Mengzi, Feilong, and Lanxin brands. In the second session, Qilin and Lanxin brands were quoted at premiums of 470-500 yuan/mt against the online price. Overall, the arrival of zinc in Guangdong increased during the holiday, and spot premiums struggled to rise. Today, the futures market showed a downward trend, but downstream buyers still focused on restocking based on immediate needs, and the trading atmosphere in the market remained average. Meanwhile, the price spread between futures contracts rose today, and spot premiums continued to remain flat.