Premiums and discounts in Guangdong continued to decline this week, dropping by approximately 40 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in Guangdong were at discounts of 80~50 yuan/mt against the market. The Shanghai-Guangdong price spread narrowed. Supply side, arrivals in Guangdong decreased MoM this week, but there was still a relatively large volume of spot cargo circulating in the market. Although the slight decline in zinc prices at the beginning of the week drove downstream enterprises to stockpile a small amount, the current consumption demand from downstream was sluggish. Meanwhile, some downstream enterprises still held a certain bearish outlook on subsequent zinc prices, leading to a large number of pending orders. As zinc prices continued to rise at the end of the week, the purchasing enthusiasm of downstream enterprises was suppressed, and market transactions deteriorated. Currently, market demand in Guangdong is poor and sluggish, with a relatively large volume of spot cargo circulating. It is expected that premiums and discounts in Guangdong will continue to be in the doldrums next week.
