Guangdong Zinc: Dip Buying from Downstream, Slight Increase in Trading Volume [SMM Midday Review]

On September 5, the mainstream transaction price of 0# zinc in Guangdong was 23,420-23,330 yuan/mt. Mainstream brands were quoted at a premium of 40-80 yuan/mt over the 2410 contract, and a discount of 80 yuan/mt against Shanghai spot prices, widening the Shanghai-Guangdong price spread. Initially, holders quoted a premium of 40-50 yuan/mt for brands such as Qilin, Mengzi, and Danxia. As zinc prices fell, enterprises engaged in dip buying. In the second trading session, holders quoted a premium of 65-80 yuan/mt for brands such as Qilin, Mengzi, and Danxia. The price spread between front-month and next-month contracts widened, and some traders were strongly inclined to hold prices firm, resulting in fewer shipments. However, overall market transactions increased compared to the previous day, with a slight increase in trading volume.