Guangdong Zinc: Guangdong’s Contract Rollover Today, Spot Premiums Center Moved Lower [SMM Midday Commentary]

SMM News on August 18: Mainstream transactions of Guangdong 0# zinc were concluded at 25,685-25,875 yuan/mt. Mainstream brands were quoted at spot discounts of 160-120 yuan/mt against the 2610 contract, and at spot discounts of 30 yuan/mt against Shanghai spot, with the Shanghai-Guangdong price spread narrowing. Today, suppliers in Guangdong offered spot discounts of 160-120 yuan/mt for Qilin, Danxia, Anning, Feilong, and Lanzinc. Today, refined zinc procurement sentiment in Guangdong stood at 1.84, while selling sentiment was 2.46. Today saw contract rollover in Guangdong, with the referenced contract switching from 2609 to 2610. Although zinc prices edged lower, they still consolidated at highs overall. Downstream buyers mostly made just-in-time procurement. Affected by relatively low premiums, some traders were less willing to sell, providing some support to premiums, but downstream consumption also capped the upside.