Guangdong Zinc: High Market Quotation Premiums, Weakened Sentiment in Downstream Orders [SMM Midday Review]

SMM, January 8: Mainstream transactions of Guangdong 0# zinc were concluded at 24,790-25,030 yuan/mt. Mainstream brands quoted spot premiums of 635-670 yuan/mt against the 2502 contract and 30 yuan/mt against Shanghai spot, narrowing the Shanghai-Guangdong price spread. In the first session, suppliers quoted premiums of 635-665 yuan/mt for Qilin, Feilong, and Lan zinc. The Guangdong market faced a shortage of spot zinc, leading to relatively high premiums and discounts. Meanwhile, some downstream restocking activities were nearing completion, prompting traders to lower premiums to facilitate sales. In the second session, premiums for Qilin and Lan zinc against online prices rose to 650-670 yuan/mt. Overall, despite the decline in zinc prices, the limited availability of spot zinc kept traders' quoted premiums high. Additionally, the price spread between futures contracts expanded today, spot premiums rose slightly, and market transactions weakened compared to yesterday.