SMM Review of #0 Zinc Spot Prices in Guangdong

SHANGHAI, Mar 20 (SMM) - Guangdong: #0 zinc was mainly quoted with premiums of 140 yuan/mt over SHFE 2305 zinc, with discounts of about 0 yuan/mt against Shanghai prices. Zinc prices fell slightly in the first half of last week, encouraging some downstream companies to restock. Cargo holders held their prices firm amid the low market supply, pushing up the premiums. In the second half of the week, the prices slumped to around 22,000 yuan/mt on negative macro factors, resulting in intensive restocking actitivites of downstream companies. Many zinc ingots were shipped directly to the downstream factories, and shipments flowing out of the warehouses were relatively stable despite the low arrivals. The spot premiums moved rangebound. Short-term demand recovery will be limited since downstream companies made intensive restocking last week, thus the premiums are unlikely to grow sharply this week.