Guangdong Zinc: Center of Futures Market Moves Upward, Spot Premiums Decline Slightly [SMM Midday Review]

SMM News on June 24:

       In Guangdong, the mainstream transactions for 0# zinc were concluded at RMB 22,030-22,185/mt. Mainstream brands were traded at a premium of RMB 180/mt against the 2508 contract and at a discount of RMB 50/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread narrowed. In the first session, suppliers quoted premiums of RMB 150-200/mt for Qilin, Mengzi, Feilong, Anning, and Lanxin brands. In the second session, Qilin, Mengzi, Anning, and Lanxin brands were traded at a premium of RMB 170-200/mt against the online price. Overall, the center of the futures market moved up today compared to yesterday. Most downstream buyers with stocking demand made purchases in the morning session, and trading activity in the market slowed down in the second session. Recently, arrivals in Guangdong have decreased, prompting some traders to slightly raise their premiums. However, the upward movement of the futures market today, coupled with the narrowing of the price spread between futures contracts, led to a continued slight decline in spot premiums.