Guangdong Zinc: Futures Market Rose Today, Trading Was Sluggish [SMM Midday Review]

SMM reported on January 16: The mainstream transaction price of Guangdong #0 zinc was 23,865-24,200 yuan/mt, with mainstream brands quoting a premium of 180-250 yuan/mt against the 2503 contract and a spot discount of 170 yuan/mt against Shanghai. The Shanghai-Guangdong price spread widened. Initially, suppliers quoted premiums of 180-210 yuan/mt for Qilin, Mengzi, and Lan zinc. Today, the Guangdong region underwent a contract rollover, and zinc prices moved higher, leading to weaker downstream procurement. In the second session, premiums for Qilin, Mengzi, and Lan zinc were quoted at 190-250 yuan/mt. Overall, some downstream buyers had already priced in yesterday. The futures market rose today, coupled with many downstream players preparing for holidays, resulting in sluggish transactions. Traders continuously lowered premiums to facilitate sales, causing spot premiums to decline.