Guangdong Zinc: Affected by Weak Demand, Spot Premiums Decline Sharply [SMM Midday Review]

SMM News on June 19:

       The mainstream transactions of 0# zinc in Guangdong were concluded at 21,895-22,115 yuan/mt. Mainstream brands were quoted at a premium of 305 yuan/mt against the 2508 contract and at a discount of 20 yuan/mt against spot aluminum in Shanghai. The Shanghai-Guangdong price spread widened. In the first period, suppliers quoted premiums of 260-315 yuan/mt for Qilin, Mengzi, Anning, and Lanxin brands. In the second period, Qilin and Mengzi brands were quoted at a premium of 285 yuan/mt against the online price. Overall, downstream demand in Guangdong is currently weak, and spot premiums/discounts have dropped significantly. Although the decline in the futures market today prompted some downstream buyers to restock in small quantities at lower prices, overall spot transactions in the market remained relatively average. Based on the current situation, it is expected that premiums and discounts in Guangdong will continue to decline.