Zinc in Guangdong: Contract rollover occurred in Guangdong today, and spot premiums/discounts continued to decline [SMM midday review]

SMM reported on July 16:

       In Guangdong, the mainstream transaction price for 0# zinc ranged from 21,910 to 22,030 yuan/mt. Mainstream brands were quoted at a discount of 45 yuan/mt against the 2509 contract and at a discount of 80 yuan/mt against spot cargo in Shanghai. The Shanghai-Guangdong price spread widened. In the first trading session, suppliers offered Qilin, Mengzi, Anning, Feilong, and Lanxin zinc at a discount of 65 to 15 yuan/mt against the online price. In the second session, Qilin, Mengzi, Anning, and Lanxin zinc were offered at a discount of 65 to 35 yuan/mt against the online price. Overall, on the day, Guangdong saw contract rollover quotes, with downstream consumption remaining sluggish. The fluctuating upward movement of the futures market reduced downstream purchase willingness, resulting in sluggish spot transactions. Under such circumstances, traders faced difficulties in selling their goods and thus continuously lowered premiums and discounts for sales, causing spot premiums/discounts to continue to decline.