Guangdong Zinc: Spot cargo transactions are difficult; today, the premium continues to decline [SMM Midday Review]

SMM, June 6:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at RMB 22,500-22,745/mt. Mainstream brands were quoted at a premium of RMB 305/mt against the 2507 contract, and at a discount of RMB 40/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread was relatively small. In the first period, suppliers quoted Qilin, Mengzi, Feilong, and Lanxin at premiums of RMB 265-305/mt. In the second period, Qilin, Mengzi, and Danxia were quoted at premiums of RMB 265-345/mt against the online price. Overall, there are currently many trading companies selling in the Guangdong market. Meanwhile, the futures market continues to rise, and spot premiums remain at a relatively high level. Therefore, downstream buying sentiment is relatively weak. Coupled with the further contraction of the price spread between futures contracts today, spot premiums continue to decline.