Guangdong Zinc: Downstream Consumption Weakens, Spot Transactions Sluggish [SMM Midday Review]

SMM, January 14: The mainstream transaction price of Guangdong 0# zinc was 24,650-24,558 yuan/mt, with mainstream brands quoting spot premiums of 535-575 yuan/mt against the 2502 contract and spot premiums of 80 yuan/mt against Shanghai spot. The Shanghai-Guangdong price spread remained stable. In the first trading session, suppliers quoted premiums of 535-575 yuan/mt for Qilin, Mengzi, Feilong, and Lan zinc, with the futures market fluctuating. Although reported premiums in the market pulled back slightly, overall spot premiums remained relatively high. In the second trading session, Qilin and Mengzi were quoted at premiums of 555 yuan/mt against the online price. Overall, downstream enterprises in Guangdong have gradually started their holidays, leading to a significant decline in downstream consumption. To facilitate sales, enterprises lowered premiums. Although the price spread between futures contracts expanded slightly today, market transactions were sluggish. With poor sales, traders reduced premiums, and spot premiums declined.