Guangdong Zinc: Weak Downstream Consumption Drives Spot Premiums Lower [SMM Midday Review]

SMM News on June 20:

       Mainstream 0# zinc in Guangdong was traded at 21,910-22,065 yuan/mt. Mainstream brands were quoted at a premium of 220 yuan/mt against the 2508 contract, and at a discount of 30 yuan/mt against Shanghai spot cargo. The Shanghai-Guangdong price spread widened. In the first time slot, suppliers quoted premiums of 190-230 yuan/mt for Qilin, Mengzi, Anning, and Lanxin brands. In the second time slot, Qilin, Mengzi, Anning, and Lanxin brands were quoted at a premium of 190-220 yuan/mt against the online price. Throughout the day, the futures market maintained a fluctuating trend. The decline in the futures market during the second trading session drove some traders to improve their sales. However, overall downstream consumption is gradually weakening, and premiums and discounts continued to decline today.