Guangdong Zinc: Downstream Just-in-Time Procurement, Spot Premiums/Discounts Continue to Decline [SMM Midday Review]

SMM News on June 23:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at 21,785-21,995 yuan/mt. Mainstream brands were quoted at a premium of 195 yuan/mt against the 2508 contract, and at a discount of 100 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread widened. In the first instance, suppliers quoted premiums of 150-195 yuan/mt for Qilin, Mengzi, Anning, Feilong, and Lanxin brands. In the second instance, Qilin, Mengzi, Anning, and Lanxin brands were quoted at a premium of 165-185 yuan/mt against the online price. Overall, downstream consumption has been in the doldrums recently. Although the futures market declined somewhat today, enterprises' current inventory replenishment is mainly driven by rigid demand. Spot cargo transactions in the market have been relatively average, and spot premiums continue to decline.