Guangdong Zinc: Zinc Prices Rise, Spot Premiums Fall [SMM Midday Review]

SMM News on June 18:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at 21,995-22,280 yuan/mt. Mainstream brands were quoted at a premium of 375 yuan/mt against the 2508 contract, and at a discount of 10 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread remained stable. In the first session, suppliers quoted premiums of 335-395 yuan/mt for Qilin, Mengzi, Anning, and Lanxin zinc. In the second session, Qilin, Mengzi, Anning, and Lanxin zinc were quoted at premiums of 335-385 yuan/mt against the online price. Overall, influenced by the weakening downstream demand, the premiums and discounts in the Guangdong market continued to decline. Meanwhile, the futures market saw significant gains today, and downstream sentiment showed fear of high prices. The market mainly focused on inventory consumption and remained cautious. Transactions in the market were average today, and spot premiums fell.