This week, premiums and discounts in Guangdong continued to decline, falling by approximately 30 yuan/mt WoW. As of Friday this week, the mainstream 0# zinc quotations in Guangdong were at discounts of 140~90 yuan/mt against the market, and the Shanghai-Guangdong price spread narrowed. This week, zinc prices rose significantly compared to last week, and downstream enterprises showed fear of high prices, leading to a pullback in procurement demand. Traders faced relatively difficulties in selling goods and continuously lowered premiums and discounts to promote sales, thus driving spot premiums/discounts down throughout the week. Currently, the arrival situation in the Guangdong market is relatively normal. Although some smelters have entered maintenance status recently, the duration is not long, and the expected impact volume is relatively small. Meanwhile, the demand from end-users is weak, and there are few new orders in the market. It is expected that premiums and discounts in Guangdong will continue to be in the doldrums next week.
