Guangdong Zinc: Average Market Transactions, Spot Premiums Declined [SMM Midday Review]

SMM, January 13: Mainstream transactions of Guangdong 0# zinc were concluded at 24,745-24,990 yuan/mt. Mainstream brands quoted spot premiums of 600-630 yuan/mt against the 2502 contract and 80 yuan/mt against Shanghai spot, with the Shanghai-Guangdong price spread widening. Initially, suppliers quoted premiums of 600-630 yuan/mt for Qilin, Mengzi, Feilong, and Lan zinc, as the futures market center moved upward. The market premiums were relatively high, leading to low purchase willingness from downstream buyers, while some traders lowered premiums to facilitate sales. In the second session, Qilin and Mengzi were quoted at premiums of 620 yuan/mt against the online price. Overall, downstream enterprises in Guangdong are expected to enter the holiday phase soon, resulting in sluggish market transactions. Today, the price spread between futures contracts narrowed, zinc prices rose, and traders adjusted prices to promote sales, causing premiums to decline.