Guangdong Zinc: Downstream Procurement Cautious, Spot Premiums Continuously Declining [SMM Midday Review]

Mainstream transactions of Guangdong 0# zinc were at 22,780-22,970 yuan/mt. Mainstream brands quoted premiums of 50-65 yuan/mt over the 2409 contract and 50 yuan/mt over Shanghai spot prices, with the SHFE-Guangdong price spread narrowing. Initially, sellers quoted premiums of around -10 yuan/mt over the online price for brands like Qilin, Huize, and Mengzi. The overall market transactions were weak in the early session, and the online price premium was continuously adjusted downwards, with some actual transactions already at a discount of 20 yuan/mt to the online price. In the second trading session, Qilin, Mengzi, and Huize quoted premiums of around 50 yuan/mt over the 2409 contract. Zinc prices rebounded in the second session, downstream procurement decreased, traders were less active in selling, and transactions weakened again. Overall, downstream companies were cautious in procurement, traders' premiums continuously declined, and transactions remained weak.