Guangdong Zinc: Downstream Gradually Goes on Holiday, Market Transactions Sluggish [SMM Midday Review]

SMM January 20: Mainstream transactions of Guangdong 0# zinc were at 24,140-24,465 yuan/mt. Mainstream brands quoted a premium of 30-100 yuan/mt against the 2503 contract and a discount of 60 yuan/mt against Shanghai spot. The price spread between contracts narrowed. In the first session, suppliers quoted a premium of 30-100 yuan/mt for Qilin and Mengzi brands. In the second session, Qilin and Mengzi quoted a premium of 30 yuan/mt against the online price. Overall, although zinc prices showed a downward trend today, they remained relatively high compared to earlier periods. Meanwhile, downstream end-users were on holiday, further weakening market demand, and spot trades were sluggish. The price spread between futures contracts narrowed today, but mainstream quotations were relatively unchanged from Friday, and spot premiums remained stable.